Though the market has displayed sharp upside movement from 10th January, though the stocks like TataSteel, Reliance, RCOM, RelCapital, RELINFRA, SBI, LT, BAJAJ-AUTO, COALINDIA zoomed by more than 15% within a month, the larger degree outlook of the market is not changed yet.
Refer to the weekly chart. The market has not breached the falling channel formed in the month of December 2010.
Only a weekly close of 5200 and above will confirm the end of this falling channel.
I strongly believe that it was the change in the trend of global currency that took place on January 10 (refer post on this blog) that fueled the buying.
On 7th December, Nifty spot made a high of 5099.
As of now, the market is near its resistance line of 5050.
The RSI is also in over-bought zone.
For the day, the selling is expected at 5049 - 62 range upto 4980 - 85.
However, if Nifty starts trading above 5072, the buying would be seen again. Hence, for the selling position, one must maintain the stoploss of 5082.
Only a weekly close of 5200 and above will confirm the end of this falling channel.
I strongly believe that it was the change in the trend of global currency that took place on January 10 (refer post on this blog) that fueled the buying.
On 7th December, Nifty spot made a high of 5099.
The RSI is also in over-bought zone.
For the day, the selling is expected at 5049 - 62 range upto 4980 - 85.
However, if Nifty starts trading above 5072, the buying would be seen again. Hence, for the selling position, one must maintain the stoploss of 5082.
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