Visit http://indiaer.blogspot.com/ for complete details ô€‚„ ô€‚„§ The Nifty closed the week on a very weak note when it pared the gains it registered earlier this week. Price pattern on the daily as well as the weekly chart now warn of a deeper price correction. On daily chart we have witnessed a Dark cloud cover followed by a bearish Belthold candle. On weekly chart we have witnessed a Doji followed by a shooting star. The price action has occurred with a weakening market breadth. The entire setup had come after a strong uptrend and marginally under the life time high levels. Immediate support levels are placed at 5080-6000 level which once breached, may open way till 5800. With the change in near term price pattern it appears that the lifetime high level for the Nifty would have to wait a bit longer. 6200 would be strongest resistance on the upside. For traders with 2-3 weeks view, quick trading opportunities on short side of the Single stock futures may arise
§ Technology and Banking scrips dragged the Nifty sharply lower below their short term support levels. Fertilizers were one of the few sectors which continued to depict strength in the market. Banking stocks look vulnerable for further correction. Bullish Setups: Sesa Goa, Tata Steel, Gail Bearish Setups: HDFC Bank, LT, BPCL, Ambuja and Powergrid
§ Interesting price action is being witnessed in global markets. Dollar Index breached the support to decline to 7 month low while Euro reversed from high 1.4 reading. Aussie continued its advance to almost parity level which is appearing to be a very stiff resistance. Short term reversals/ consolidation is likely in almost all of the above currency pairs as the sentiment readings are extreme. Gold, Silver, Crude and Sugar declined from the highs.
§ Interesting chart setups: Gail; LT, HDFCBANK
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