Last Week ending on Friday (18th June 2010) NIFTY gained almost 2.80% and closed at 5262.60 as compared to the last week’s closing of 5119.35. On the weekly charts, NIFTY has made a White Opening Marubozu Candlestick, after last two weeks of uncertain candlesticks. For this week markets strengthened and continuously made a closing higher than the previous day’s close. The ADAG Group stocks played a major role in the last week’s rally. All these stocks had minted handsome gains to the investors, if compared with their last week’s closing RELCAPITAL (+7.75%), RCOM (+7.01%), RNRL (+20.42%), RPOWER (+6.66%), RELINFRA (+4.54%), RIIL (+30.89%), RELMEDIA (+14.43%). The markets had a good bull run after breaking the important resistances of 5150 and then 5235. On Friday, a bit of profit booking was seen in the markets, due to disappointment from the Reliance Industries’ 36th AGM (Annual General Meeting). For the week NIFTY made a high of 5302.30, and closed at 5262.60. NIFTY has moved much above its 40-Days EMA (Exponential Moving Average) of 4961.52 and is now taking support of its 20-Days EMA of 5114.48. For the next week, a bit of profit booking is expected, which may drag NIFTY till the levels of 5200/5185.
For the next week, again stock specific and sector specific movement in the Indian markets are expected. On the Global front, UK Government is going to announce its emergency budget along with the Stress Test of top 25 EU Banks. In US Housing sales reports will dominate economic news.
On the Weekly Charts too, RSI (Relative Strength Index) is turning into positive zone, but with the ongoing uncertain global environment, traders are suggested to trade cautiously by following Strict Stop Losses and avoid making fresh investments at this point of time.
For the next week, the level of 5345 will act as an important resistance, whereas the level of 4985 will act as an important support for NIFTY.
No comments:
Post a Comment