WEEKLY MARKET UPDATE AS ON MONDAY 19 th NOVEMBER 2012

NIFTY SPOT - (5574)

In the last week NIFTY made a weekly high of 5719 on monday and then fell down to a weekly low of 5560 on friday, and then closed the week @ 5574. It must be noted here that we are in a correction which has begun @ 5815 on 5th octobe, and has completed 28 trading days. Typically a fall at the end of a major consoditaion shows that the weak hands are exiting.  While the NIFTY is still in a fall, it is in its final stages of the fall and hence traders should refrain from aggressive selling at lower levels. In the current week NIFTY has support @ 5534 - 5484 - 5452 while resistance can be expected at 5625 - 5678 - 5751. As we are in an intermediate downtrend, sell on rally is the strategy in the first half of the week. However as  we are in the final stages of the correction, sell only in small quantities with tight stop loss and small down targets. On monday sell on rally to 5600 - 5615, with a tight stop loss @ 5625. If the NIFTY is unable to rise above 5625 on  monday it can then fall down to 5543 - 5475 in the span of next 2-3 days. On the down side strong support exists @ 5484 -5475 levels and traders can use declines of 2 days to 5545 / 5484 - 5475 levels  to cover shorts and go long with a stop loss of 5440. BUY ON 2 DAYS DECLINE TO 5545 / 5475, STOP LOSS 5400, TARGET 5850.

POSTIONAL TRADING CALL

Buy REC @ 220. Stop loss 213. Target 240-250.

WEEKLY MARKET UPDATE AS ON MONDAY 5 th NOVEMBER 2012

NIFTY SPOT - (5698)

In our last weekly update we had suggested that the NIFTY can fall down to 5617 by tuesday, where buying can attempted for a rise of 144 / 233 points. We had also suggested to be cautious in view of the RBI policy and review your postion after the RBI credit policy. Accordingly, Last week NIFTY made a low of 5583 (after RBI policy) on wednesday and then jumped up to 5711 and finally closed the week @ 5698. In the current week NIFTY has support @ 5660 - 5647 - 5632 while resistance can be expected at 5752 - 5785 - 5871.  A weekly close above 5705 would be bullish and can take the NIFTY toits next target of 5871 by 15th November. In the current week NIFTY has strong support level of 5660. As long as the NIFTY maintains above this it  can slowly hit a target of 5900+. In case the NIFTY breaks decisively below 5660 the next support level  will be 5632 and after that 5575. In such a scenario the NIFTY can remain in a small sell mode upto 10th November,  with lower tragets of 5575 / 5550.In such a case falls upto 5550 can used to go long with a stop loss of 5530 on a closing basis.