As indicated in my last weeks opinion http://samirmachawe.blogspot.com/2011/12/nifty-next-week-05-dec-2011-on-wards.html, the rally finally fizzled out for both Nifty and Bank Nifty. Nifty turned down from 5100 and Bank nifty barely managed to touch 9280, turning down from 9273. Overall, both indices closed in the negative for last week. Anyone who took my advice either to open short positions or getting out of long position at higher levels will have a reason to smile.
Nifty view for the current week -
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| Nifty since Nov 2010 |
The journey from here on appears very tough for Nifty. I do not see much possibility that nifty would trade above 5000-5050 levels for a few weeks to months in immediate future. The secular trend is now down and last week was probably the last attempt to close above 5000.
Nifty faces high resistance on the upside in the 4920-4980 zone which looks unlikely to be taken out for some time to come now.
On the lower side expect Nifty to show levels of 4820/4790/4750 & lower. Its almost certain that all the previous lows (4700 & lower) shall soon be challenged soon.
I do not recommend any long positions now. On 7 Dec I recommended buying Nifty 4700 (Jan) PUT around Rs. 50. This PUT doubled by 9 Dec and closed above Rs.100 on Friday. There shall be more such trading opportunities. Follow me on Twitter for that. http://twitter.com/#!/SamirMachawe
Bank Nifty view for the current week -
As indicated last week, bank nifty did extend the rally and all my targets were achieved. The rally for bank nifty to died down at higher levels as was indicated. The story for Bank Nifty is not very different from that of Nifty above. The possibility of Bank Nifty trading above 9000 in the near future looks remote. It faces major resistance in the 8920-8980 zone and looks unlikely that it will be able to trades beyond that.
On the down side expect it to show levels of 8690/8580/8470/lower soon. Bank Nifty too looks all set to challenge 8400 level soon.
13 Dec - Nifty closes @ 4800, up 36 points. However any up move wont be sustained. Nifty close above 4850-4880 looks almost impossible. Take short positions above 4800, if at all it trades there tomorrow.
ReplyDeleteAll downside targets indicated above achieved. Nifty closed the week @ 4651 with huge losses. Bank Nifty too closed with huge loses and all down side targets were hit here too.
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