INDIAN STOCK MARKET: WEEK IT WAS(19-23 MARCH,2012) AND WILL(26-30 MARCH) BE
The week that has passed closed with a downside of 1% almost on Nifty. The loss and gain were not the highlight of the week. It was volatility that took center stage. And in the end we seem still clueless, or better say that we now know that the next week will be between 5180 and 5420 come what may be. So we have only 100 points to the downside and about 140 points to the upside. But the swings may fetch you 80-100 points for the week, if you can measure the daily swings and have tight stop-loss.
The downside is what may open up, if rupee dollar drama continues. There seems no other cues for the Indian Stock Market which would disturb the market too much to break the 200 DMA on Nifty 50 charts. It is also expiry week , and with open interest declining throughout the last week and even PCR(put call ratio) taking a dip midweek, and again regaining its level,it is needless to say, we will need to handle volatility.
On the weekly charts we can see that the indicators are reaching overbought levels, but the next week can sustain the same levels on can increase a bit. There is scope for a bit of upswing in every oscillator.
At the end, if you stay glued to screen and you are experienced dealing in volatility, the week will offer you 100 points at all costs on Nifty. Tight stop-loss and reverse you position nimbly.
The IT sectoral indices or any of your favorite IT stocks too can be watched and traded this week. I mean the sector to watch for the coming week would be IT.