Overall during the week ended 10th December 2010, the market witnessed a steep slide, with small-cap and mid-cap stocks taking a beating on concerns over regulatory crackdown on companies indulging in price rigging and an ongoing investigation into telecom corruption scandal.
We anticipated both downside and upside in below posts
Next week looks interesting as we have the advanced tax figures of the Indian corporate for Q3 FY11 will be closely watched for any indication on the quarterly performances and RBI credit policy on 16 December.
Nifty Daily Chart
Nifty is forming a wedge pattern on daily charts as shown in above chart.Nifty if it break the pattern on upside and again regain its strength above 6000 Levels and if Nifty fails to cross the level and breaks 5700 on closing basis except a fall till 5400 levels.
RSI and MACD are showing positive divergences on daily charts
Nifty Weekly Chart
On Weekly charts again we are seeing resistance around trendline on weekly closing basis and a close above this can only provide momentum to bulls.
Looking at the Open Interest Chart 6000 CE is having Higher OI which is currently the resistance and 5700 PE is having maximum OI in puts which looks like to be support for coming sessions.
Nifty Levels to be watched on Upside
5 Week EMA@5877
Swing High 5927
Support at Bottom comes at 5811 5760 and 5670
Buy 6000 CE above 5883 levels Tgt 20-30% upside.