WEEKLY MARKET UPDATE AS ON MONDAY 03 rd DECEMBER 2012

WEEKLY MARKET UPDATE AS ON MONDAY 03 rd DECEMBER 2012

NIFTY SPOT - (5880)

Last week the NIFTY moved precisely as we had mentioned in our weekly report. In our last weekly report we had mentioned that if the NIFTY held above 5585 and moves above 5650 it can post a strong rally to 5748 /5843.  In this upmove NIFTY was expected to move above 5778 on or before 30th November (Time & Price target), to give a fresh breakout for higher targets of 5874 - 5600. Accordingly NIFTY posted a strong rally and broke above 5778 on 29th November, thereby achieving its Time & Price target. By confirming with a Time & Price target breakout NIFTY  now has the potential to rise to much higher levels in the next 2 months. In the current week NIFTY has support @ 5782 - 5745 - 5710 while resistance can be expected at 5900 - 6031 - 6183. In the last 8 trading days NIFTY has moved up by 350 points from, 5550 to 5900. Hence it will be logical & healthy for the NIFTY to consolidate over its last weeks gains befo a fresh upmove  is commenced. Ideally in the current week NIFTY can trade in a consolidation mode with a a postive bias. Hence eventhough the NIFTY is likely to consolidate in 5900 / 6000 to 5745 / 5610 range, the undercurrent  will be strongly postive and trades should utilise all declines to support levels to buy for higher targets  next week. Action is likely to be witnessed in midcap stocks as the frontline stocks take a break.

POSTIONAL TRADING CALL

Buy Dhanlakshmi Bank @ 64-65. Stop loss 59.5. Target 80 - 85.