WEEKLY MARKET UPDATE AS ON MONDAY 03 rd SEPTEMBER 2012

NIFTY SPOT - (5258.5)

In our last weekly we had maintained a bullish stance with a stop loss of 5258.5 on a weekly closing basis. Contrary to our view, marke t traded with a negative bias throughout the week, but the bulls managed to close the week above our crucial level of 5258 and  salvage some pride. Even though the markets have closed above 5258, it now appears that the bulls have won the battle but have  lost the war !!! In the current week NIFTY has support @ 5194 - 5130 - 5030, while resistance can be aniticipated at 5322 - 5369 - 5386. We  will have a bullish outlook, only if the NIFTY closes above 5417 and will have a bearish outlook if the NIFTY closes below 5258.  If the NIFTY trades between 5417 - 5258, we should still have a bearish stance and use a sell on rallies strategies and look for  a bearish close below 5258 for further bearishness. Ideally in the current week NIFTY can post a small rally in the first 2 trading days to levels of 5293 - 5327. After this rally if the NIFTY breaks below 5238 then the NIFTY can fall down further to 5193 - 5130. A NIFTY weekly close below 5193 on or before 15th september  can take it to levels of 5130 - 5001 - 4873 by the end of september.

POSTIONAL TRADING CALLS 1. Sell REC @ 185-190. Stop loss 203. Time & price Target 160 on or before 5th / 25th september.