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.