Daily Nifty Observer

Issue - 590 January 24, 2012

....may continue to trade above 5095 levels on intraday.......

Nifty Outlook

Support

5120/5090/5070

5150/5170/5190

Resistence

Market Strength Indicators

14 days RSI - Up by 4.37 points at 72.36 levels 14 days SchRSI - Up by 1.42 points at 100 levels Stochastic - Down by 1.22 points at 92.24 levels TSI - Up by 3.97 points

Market Intensity Indicator

NFP - At discount of 6.9 from premium of 4.8 earlier Advance - 884 Decline - 587 Volatility - Down by 0.02 points at 0.13 levels from previous PC Ratio - Up by 0.02 points at 1.32 levels from previous

Global Indices

Asian - Up Europe - Down US - Mixed

Other Indicators

Gold - Up Crude - Up FII's Spot - Positive DII's Spot - Negative F&O - Positive

14 days Schotestic RSI (60 minutes chart) closed at 53.71 levels & traded across its 9 period EMA for whole of the trading session and managed to close around it. Today it may try to come above its 9 period EMA levels allwoing Nifty to trade above 5070/5090 levels. NIfty not only tested 5095 levels but also sustained and closed above it on intraday Above 5095 levels 5200 levels is important resistance levels with 5150 as mild resistance levels.

Spot Nifty Daily Chart Analysis

Super Trend in 240 minute Nifty chart is moving in its bear phase. Nifty not only crossed but also sustained above an important levels of 5095. Sustaining above 5095 levels in next few 240 minutes candle will allow Nifty to move towards 5020/5040 zone. Since last sixteen trading sessions Nifty following lower channel of an Andrews Pitch fork. If in next few Heinin candle Nifty managed to sustain above its pseudo regression line then it will open path for 5220 levels or above. The Andrews Pitch Fork is drawn from the low of 4531.80 (20/12/11), high of 4800.40 (27/12/11) and low of 4588.15 (02/01/12). Sustainability above 4950 levels will open gate for 5220 levels. Below it, 4840 levels will act as strong support levels.

60 Minute Chart Analysis

240 Minute Chart Analysis

20 days SMA- 4843.06 50 days SMA - 4822.87 200 days SMA - 4211.99 Bollinger Band - Around Upper Band

Note on intraday Price,OI & Volume

On Tuesday rise in Nifty (1.61 %) was registered with rise in Nifty January 12 futures open position (25.32 %) and rise in Nifty spot intraday volume (39.08 %). Nifty rise with rise in OI and volume suggesting that the market is attracting larger numbers of trader willing to open positions from the long side and hold them. Traders are more confident that prices will continue to climb up. This scenario indicates for a bullish movement to continue. Current rise of 1.61 % in Nifty was due fresh long build up in Nifty January 12 series. Nifty January 12 future may trade above 5090/5070 levels on days to come. Below 5090 levels, 5020/4950 levels will act as a strong support levels in days to come.

Moving Average Indicator

Spot Nifty closed at 5127.35 up by 1.61 % after up trading session.with rise in volume which was above its 20 period SMA. It made a high of 5141.05 and low of 5049.80 levels in intraday. Nifty is trading above its 20 period, above its 50 periods and below its 200 periods SMA. Long term trend is bearish as Nifty is trading below its 200 days SMA . Momentum oscillator is indicating that Nifty is trading below its over bought zone on intraday chart. On daily chart 5095 is an important levels to watch, above it it may find stiff resistance around 5220 levels. Sustainability below 5095 levels Nifty may move towards 5020/4950 levels or even lower.

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Stocks Corner

Performance Corner

Analyst Certificate & Disclaimer

Fresh Short

Long Liquidation

BOMDYEING ULTRACEMCO NTPC COLPAL COREEDUTEC MARUTI POWERGRID GAIL ASIANPAINT BHEL HINDUNILVR HAVELLS PIRHEALTH BRFL WELCORP

Daily Calls Monitor

Short COpper Feb 12 future @ 418.50/419.00 sl 421.20 tht 416.20/414.00 Short Silver Mar 12 future @ 55400/55500 sl 55900 tgt 54800/54400 Short Crude Feb 12 future @ 4997/5004 sl 5024 tgt 4970/4049

BUy Nifty Jan 12 future @ 5050/5060 (spot) sl 5029 tgt 5080/5110 Buy SBI @ 1977/1985 sl 1965 tgt 2005/2024 BUy Tata Steel @ 433/435 sl 428 tgt 439/444

Fresh Long

Short Covering

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