TURNING POINTS FOR WEEKENDED 18.03.2011

NIFTY FUTURE WEEKLY

NIFTY FUTURE:

During the week, Nifty Future made a range of 186 points (High 5562 & Low 5376) and closed near the low of the week at 5387. A weak closing that too in the 7th week which is important if past is any indication. Moreover, on the weekly chart, Nifty Future made a lower top/ lower bottom - though broadly it remained range bound. Considering the weak close and the previous indication of the 7 weeks, one has to be prepared for Nifty Future to breach the previous low of 5375.

In an unlikely event of Nifty Future opening firm on Monday, one can consider the level of 5375 as a stop loss for long position.

On the way down, 5310 and 5265 will provide support. Weakness will accelerate only when 5250 is broken.

While Japan's Nuclear Leak is yet to get under control, we have one more leak from WikiLeaks affecting our politics. Will this season of Leaks take Nifty Future down and break the 5250 level? I guess, next week should be an interesting one as the 21 weeks time period indicated since last Diwali will soon come to an end. While, the price target of 4400 does seem far away, one needs to wait and watch what happens if and when 5250 is broken on the down side.

Wishing you all a "A HAPPY HOLI".

Ketan Asher.