Nifty controlled by BULLS - This week is very crucial.

Last week was great for Nifty as it rode more that 200 points in a stride. In last 3 weeks alone, Nifty has gained 457 points. That shows that the trend has clearly changed and the safest positions remain long positions.

Nifty view for the week Starting Monday 30 Jan 12 -

As indicated in the comments on my last weeks opinion, Nifty rallied all the way to 5200. The current rally has shown some minor sign of losing steam, any downturn must be watched carefully.

This week remains extremely crucial for Nifty as it has closed near the long term falling trend line (see image). Since Nov 2010 high, all attempts to make new tops have failed taking the market to lower levels. It remains to be see how markets behave this week. A new long term trend can be set depending on how the markets respond this week. 

On the upside expect Nifty to show 5220/5252/5280 soon. It is likely to face some resistance between 5200-5220 but has strong support at 5180-5160 zone and not likely to trade below that. Any time nifty trades close to this zone, fresh long positions must be taken quickly (with proper stop loss) and a strong bounce cannot be ruled out. In case these supports are broken, 5130/5080/5050 are possible.

Overall, Nifty is poised for trend change soon.