Nifty Weekly Outlook (23rd to 30th July 2010)

Last Week ending on Friday (23^rd July 2010) NIFTY gained around 1.02% and closed at 5449.10 as compared to the last week’s closing of 5393.90. On the weekly charts, NIFTY has made a Small White Candlestick, carrying on the uptrend since the last two weeks. As the results season has arrived both in local and international markets, markets are trading very range bound, but then too indicating that the uptrend is present in the market. Due to a good up move in the markets, Metal, Realty & Infra, and Financial sector also gave a good spurt, but at the same time the movement was heavily impacted by the Quarterly Results (both at National and International Levels).  For the last week, NIFTY made a new 52-week high of 5477.50 and a low of 5353.60. One may say that NIFTY moved very sentimentally for the last week too. NIFTY has moved much above its 40-Days EMA (Exponential Moving Average) of 5046.47 and 20-Days EMA of 5195.42.

The next week will be very crucial and decisive for the markets as the Big Boys like, NTPC, BHARATFORG, STER, HINDUNILVR, LT, CAIRN, RELIANCE, TATACOMM, ONGC, HDIL, SAIL, BPCL ABB, RNRL are going to announce their Quarterly Results and also the RBI (Reserve Bank of India) is going to declare its Credit Policy and at the same time F&O expiry is also on Thursday (the last Thursday of the month).

All the major International Indices bounced back from their crucial support levels which may now invite a good up run. For the next week, a good trading momentum will be observed in Sector Specific and other specific stocks, but then too traders should follow a cautious approach by following strict Stop Losses.

On the Global front, in US, Exxon, Chevron, Boeing and Sprint lead a long list of earnings reports. An equally long list of economic data, including GDP, consumer sentiment, unemployment and new-home sales are awaited. European markets will get their first chance to react to the bank stress tests, with the latest earnings from BP, Royal Dutch Shell, Deutsche Bank and UBS all likely to be closely watched. In Asia, results are due from Big Boys like Sony, Panasonic, LG Electronics and Samsung, Honda, and Japan's largest bank, Mitsubishi UFJ.

On the Weekly Charts too, RSI (Relative Strength Index) has turned into positive zone, but with the ongoing uncertain global environment and results season, 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 5500 / 5545 / 5580 will act as an important resistance, whereas the level of 5315 / 5260 / 5230 will act as an important support for NIFTY.