MARKET OUT LOOK 04-01-2010
Nifty closed at 5210.05 on 24th December 2009, the last trading day of the previous trading week, there by gaining 22.65 points or 0.44% over previous week close. Let us watch the nifty movement
date open high low close
12/24/2009 5144.80 5197.90 5129.05 5178.40
12/29/2009 5180.75 5214.60 5175.85 5187.95
12/30/2009 5188.75 5197.05 5160.10 5169.45 close %
12/31/2009 5171.20 5221.85 5168.75 5201.05 22.65 0.44
In my previous week write up I opined that “Based on the above I am of the opinion that Nifty is likely to see some correction in days to come.”
Nifty posted gains on first trading day, lost ground on second trading day and posted gains on last trading day, there by posted gains week on week basis. My assumption was proved wrong and Nifty did not undergo correction as expected by me.
Let us examine the Nifty chart to make an assessment of what is likely to be the next week action.
The Nifty touched the upper band of Bolinger and started the downward journey on 30-12-2009. The chande momentum oscillator is sloping down but did not cross it’s 9 days moving average. Nifty also touched the upper band of projection band, and started the downward journey to lower band. R squared is turning up from lower levels and the present reading is 0.15 well below the critical value showing that the present uptrend is not statistically siginificant.
Based on the above I am of the opinion that the correction phase of the Nifty is not yet over and the probable targets are likely to be 4963 being bolinger lower band reading as of now, 4985 being projection band lower band reading as of now.
Regards
Subrahmanyam
