NIFTY WEEKLY:- 9th Dec. – 13th Dec., 2013
S&P CNX Nifty is almost there, yes; at its peak almost. The question to ponder for the coming week is that will it touch the peak? The second question is will Nifty surpass the previous high or will reverse the up move once it touches the previous high? The encouraging scene for the Bulls is that after Nifty touched 6300, there has been no large-scale distribution in Indian Stock Market. With favorable or as expected by the market players result of state elections on Monday; Nifty will surge beyond 6350 !!! No doubt there will be regular profit bookings at these levels in the market but if Nifty sustains above 6170 in the coming week then technically it will be on course to touch 6465-70 and beyond by the first week of January 2014. Let us also not forget that US FED tapering may start pretty soon in coming months and then The markets would react differently.
For the coming week Nifty has two important supports at 6230 and 6150 levels. The other lower levels to watch are 6030 and 5970 before Bulls would throw in their towels. Levels above 6285 in the coming week are for long only positions. Bears can always gain intraday by shorting at profit booking levels. As stated earlier, intermittent profit booking at such higher levels will be taking place in Nifty.
The most important fact is how the market reacts once we touch the previous high. Earlier too Nifty has traded in this zone but was unable to break the barrier. This time if it does not; it will bring in more disappointment and challenges to surpass the highs will become stiffer.
Will the election result be the booster on Monday OR will they disappoint the markets; let’s watch in the coming week…