Technical outlook of NIFTY for mid term

On Feb 03, 2012 NIFTY broken out its down sloping trend line resistance of descending parallel channel and nicely rallied up to 5629.95 but was not able to breach its primary resistance that was 5690.35 (Green line) during that rally. On Friday nifty closed at 5086.85 at crucial support level. 5100-5080 zones are important to watch stability below 5080 would signal continuation of bear market and nifty may head towards 4950 that is 61.80% fib retracement of recent bullish swing. Weekly close below 4950 would signal failure in fresh bullish development and NIFTY may fall till 4850-4650 otherwise jump can’t be ruled out from 4950 zones.

Supports: 5080- 4950-4656

Resistances: 5180-5380-5691

Recommendation: buying between 4930-4970 zones for targeting 5350-5650 with stop loss below 4850 on weekly closing basis might be appropriate.

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#NIFTY #INDEX currently trading at 13438, down by 90 from previous close. Today index has opened gap down and taken out the low placed yesterday at 13449 triggering primary weakness in market for the day. Immediate support is now placed at 13390, retest to this level can’t be ruled out but stability below 13390 will result in to further weakness and then attempt towards 13350-13310 zones can’t be ruled out. Key support will be at 13300 and further stability below that level will bring more weakness. Resistance is now placed at day high which stands at 13488, any sustained move (Less likely) above that level will bring some relief to bulls and then attempt towards 13540-13590 can be seen. On #option_chain heavy #call_writing is being done at 13500-13600 strikes where as short covering is visible in 13450 and 13500 puts whereas longs build up seen in 13400 puts with high volume. Based on current #OI position level of #option_pain stands at 13400 thus based on current data at 10:52AM...

LET THE MARKET TELL WHO WE ARE

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