Saturday, January 21, 2012

TURNING POINTS FOR 23.01.2012


NIFTY FUTURE EOD / NIFTY FUTURE 30 MIN
NIFTY FUTURE:
The past week ended as one of the best in recent times but the good feeling vanished when Reliance declared weak results. In the second session on Friday, Nifty Future did correct, but only to bounce back sharply in the last 30 mins. It closed the day at 5048 (may be as a mark of respect to the trend line on the weekly chart and the level of 5050 indicated by me).
For Monday, it is believed (by the experts in the media) that Reliance should see some correction and that would lead Nifty Future to open weak and gap at 4983 level may provide first support. As such, I would consider 4950 as a good support for Nifty Future. If this level is breached, we have strong support at 4825-4850 level. While I do believe this level to be a very strong support, I am not too sure whether one should take the risk of going long, just a day prior to RBI credit policy - particularly when so much hopes are already built into Bank Nifty.
I would consider it prudent to just wait on the sidelines till Wednesday, by which time we are done with the RBI policy as well as the FNO settlement and take a fresh look at the market after the Republic day. I would hasten to add that Dow too is at striking distance from its 52 week high and that too with negative divergence on the EOD Chart - which does not look very encouraging for sustainability of the current up move.
Have a nice weekend!
Ketan Asher.

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