WEEKLY REVIEW

JAY SWAMINARAYAN

We said   “   Nifty will be traded with negative bias below 5300 and it would be decline towards 5210 – 5120. Other hand above 5300 Nifty will be traded with positive bias and tries to test 5390 – 5480.   “   We suggested    Strategy:   [1]  Open short below 5300 with stop loss 5390 for target 5210 – 5120.   [2]  Open long above 5300 with stop loss 5210 for target 5390 – 5480.

Nifty traded expected after opened weak. In first half Nifty achieved our 1^st down side target than it turned up in second half towards 5300 but not succeed to sustain above it. So it declined sharp towards our first down side target again and registered low of 5185 on last day. Nifty lost 115 points ( - 2.17 % ) and closed in red.

                                                             

                                 For This Week

We expect Nifty will be traded with negative bias below 5210 and it would be decline towards 5120 – 5030. Other hand above 5210 Nifty will be traded with positive bias and tries to test 5300 – 5390.  Nifty should find 1^st Sup. at 5170 – 5120 & 2^nd Sup. at 5080 – 5030 and Nifty should find 1^st Res. At 5260 – 5300 & 2^nd Res. At 5350 – 5390.

After 27-01-2012 first time Nifty gave weekly close below 5210 and this is bearish sign for market. If RBI cuts CRR or Interest Rate ( or both ) on Tuesday as per market expectation than market take it positively and Nifty should survive otherwise ????? We may see level of 5030 in next 1-2 weeks.

We expect volatility to remain in the market because of RBI Credit Policy on Tuesday and Inflation number will be announce on Thursday. So be cautious and trade carefully with strict stop loss for both side trades.

Strategy:

[1]  Open short below 5210 with stop loss 5300 for targets 5120 – 5030. 

[2]  Open long above 5210 with stop loss 5120 for targets 5300 – 5390.

NIFTY :: OP = 5282.50 , HI = 5306.75 , LO = 5185.40 , CL = 5207.45.