Market out look 04-11-12

OM NAMO BHAGAVATHE SREE RAMAKRISHNAYA

Namste. The Nifty closed at 5697.70 on 2^nd November 2012, the last trading day of the previous week. The movement of Nifty for the last trading week was as under

Date	Open	High	Low	Close	Change
10/26/2012	5683.55	5697.20	5641.75	5664.30
10/29/2012	5665.20	5698.30	5645.10	5665.60	1.30
10/30/2012	5656.35	5689.90	5589.90	5597.90	-67.70
10/31/2012	5596.75	5624.40	5583.05	5619.70	21.80
11-01-2012	5609.85	5649.75	5601.95	5645.05	25.35
11-02-2012	5696.35	5711.30	5682.55	5697.70	52.65
Change Week on Week Basis
33.40	0.59	%
Gain			101.10
Loss			-67.70
Nett			33.40

Let us examine the likely movement of Nifty in days to come with the help of few technical charts.

Nifty started it’s upward journey from lower band of Bolinegr on 31-10-2012, and not yet reached the upper band. The Chande Momentum oscillator is still below the moving average and not yet reached the over sold area. ( Plz see Nifty-1)

Nifty Reached the upper band of Projection Band and R-squared is still trending down indicating the strength in the movement is not strong. ( Plz see Nifty-2)

The PZO and VZO are trending up from middle line, without reaching the over sold area ( Plz see Nifty-3)

The premier stochastic and Laugurrie RSI are trending up. Premier did not reach the over sold area. ( Plz see Nifty-4)

The DT oscillator is trending up. Ploynomial order lower band was not touched by Nifty, whose journey started at upper band. ( Plz see Nifty-5)

True Strength Oscilator is still down, and just turned up, not above it’s Moving Average ( Plz see Nifty-6)

Based on the above I am of the opinion that Nifty may undergo some correction before resuming it’s upward journey.

I believe that extreme caution is required on the following days

5^th November 2012

I also believe that, close of Nifty above/below the levels of  5711.30 and 5682.55 will be very crucial.

Regards

Subrahmanyam