Market out look 11-11-12

OM NAMO BHAGAVATHE SREE RAMAKRISHNAYA

Namaste. In my previous week writeup I opined that,

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

Let us examine the Nifty movement during the previous trading week

Date	Open	High	Low	Close	Change
11-02-2012	5696.35	5711.30	5682.55	5697.70
11-05-2012	5693.05	5709.20	5679.50	5704.20	6.50
11-06-2012	5694.10	5730.80	5693.65	5724.40	20.20
11-07-2012	5718.60	5777.30	5711.40	5760.10	35.70
11-08-2012	5709.00	5744.50	5693.95	5738.75	-21.35
11-09-2012	5731.10	5751.70	5677.75	5686.25	-52.50
Total gain					62.40
Total Loss					-73.85
Nett					-11.45
Percentage change WOW Basis					-0.20	%

Nifty closed flat week on Week basis. Nifty was just 6.50 points up on first day, later went up for two trading days and was down for last two trading days. I also mentioned that 5^th November is very  important day.  I quote “I believe that extreme caution is required on the following days

5^th November 2012”  on intra day basis Nifty underwent sea saw movement on this day.

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

Let us examine what is in store for nifty in days to come with the help of technical charts.

Nifty made a top outside the bolinger band whose bottom is inside the lower band , Plz see Nifty-1, which call for trend reversal.

The Price zone oscillator made a top out side our bought area and returning. Plz see Nifty-3

The DTO oscillator is in over bought area, about to cross it’s important moving average, Plz see Nifty-4

Wave Trade oscillator is turning down, not yet crossed it’s moving average, Plz see Nifty-5

The Important support for nifty as VWAP is 5646.18, Plz see Nifty -2

Based on the above I am of the opinion, Nifty may undergo correction during the coming week.

Regards

Subrahmanyam