Saturday, June 18, 2011

TURNING POINTS FOR WEEKENDED 17.06.2011



NIFTY FUTURE WEEKLY

Finally the weekended with the low of 5361 - which was being mentioned in my post for some time now. The range for the week was 174 points (High 5535 & Low 5361). The weekly low has been on the trend line shown in the Weekly & Monthly chart. While Reliance continues to remain weak, Infosys did show a bounce from the lower levels.

Nifty Future is now at a critical juncture. If it goes below 5350 we could see it testing 5300 levels. Crossing 5420 will be the first sign to indicate that my optimism for a bounce is not misplaced.

Considering the up move in US markets and our markets nearing FNO settlement date on 30th June, I am hopeful that 5350 will not be broken this time around. However, I would like to caution that increase in diesel price may belie my optimism for a bounce.

On the attached Monthly/Weekly chart you will observe that the space on the right hand side of the chart is narrowing and looking at the not so promising outlook on various fronts, one needs to be prepared for a downside break out in coming weeks.

Have a nice weekend!

Ketan Asher.

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