WEEKLY MARKET UPDATE AS ON TUESDAY 17 th DECEMBER 2012

WEEKLY MARKET UPDATE AS ON TUESDAY 17 th DECEMBER 2012

NIFTY SPOT - (5880)

In our last weekly report we had mentioned that even though we were anticipating a correction in the markets,  the undercurrent would remain bullish. During last week NIFTY made a high of 5965 and a low 5839  and closed the week @ 5880. We would once again like to reiterate our bullish stand and even though the indices are likely to take some time off, stock specific movements and individual scrips are likely to be in limelight. In the current week NIFTY has support @ 5833 - 5820 - 5796, while resistance can be expected at 5892 - 5925 - 5965. While 5925 is the most important reversal point, once the NIFTY moves above 5965,  it will easily rise above 6000 and then the next targets are 6033 - 6186. In the current week NIFTY is likely to trade with a minor -ve bias on monday & tuesday, whereby it can have  a small dip to levels of 5833 by tuesday. If during this fall if the NIFTY does not fall below 5790 (bull stop loss),  then we can expect a very powerful upmove from around 5833 levels. Once this upmove crosses above 5925,  the 8 days NIFTY correction which began on 6th december can be assumed to be over. In order to confirm the bottom expect the NIFTY to post a powerful upmove from around 5833 levels which will take the NIFTY above 5965 in the next 3 trading sessions ( before friday). In the current week NIFTY is poised for a very sharp reversal (sl 5790) on tuesday 18th Dec, which also  happens to be the day on which the RBI policy is likely to be declared. Trade with a postive bias, if the RBI policy has some good news for investors and especially when the NIFTY holds above 5790 and then moves above 5925. Once NIFTY zooms above 5925, the next days headlines are likely to be "RBI BOOST  HELPS NIFTY BREACHES ABOVE 6000"