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Nifty outlook for 11-11-2012 ( daily and Weekly)

Nifty ended the day on negative note at 5686 levels by losing 52 points. After opening seven points lower at 5731 levels, Nifty rose higher and made day’s high at 5751 levels in an early trade. Thereafter, witnessing continuous selling pressure, Nifty slipped at day’s low at 5677 levels.

The formation of “Red” candle with higher upper shadow on daily chart which implies selling pressure indicates weakness in the market. In case, if Nifty fails to hold 5710 levels which is acting as important resistance levels of the day as 50% correction levels of ”Red” candle then weakness will persist further  i.e. below 5680 it will lead 5640 and below that 5600 levels. On the contrary, if Nifty succeeds to hold and sustains above 5710 levels then bearish effect will get nullify and market will test 5800 levels in coming session.
The level of 5650 will act as trend decider levels. A sustainable move above this levels will lead pullback rally in the market. However, failure to trade above this levels will lead further fall in our view.

Support               1)  5650  2) 5610
Resistance          1) 5710   2) 5750

Weekly  Outlook

Nifty ended the week 11 point lower at 5686 levels against previous weeks 5697 levels. Mid cap index rose 0.23% and Small Cap index gained 0.07%. Both indices outperformed the market.

On Weekly chart, Nifty has formed small body “High wave” pattern with higher upper shadow. This indicates that the market is having difficulty coming to a consensus on security’s value. It means this indicates indecisive nature of market as neither buyer nor the sellers have a clear sense of the direction where demand and supply are equally balanced.  In this kind of scenario, the level of 5720 on higher side and 5640 on lower side remains important levels to watch for the week. If Nifty manages to hold and sustains above 5720 levels then trend will remain positive. In that case Nifty will test 5820 levels in coming session. On the other hand, if Nifty fails to hold and remains below 5640 levels for the week then trend will remains negative. In that case, Nifty’s possibility of violating 5500 marks can not be ruled out.
The level of 5370 will act as trend decider level for the day. A sustainable move above this level will lead continuation in upward rally in Nifty. However, failure to trade above this level will lead at least intraday correction around 5340-30 levels in Nifty.
Support           :-      1)   5630  2)  5550
Resistance      :-       1)  5730   2)  5820


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