Market View for Monday 13 Aug 2012

Index Levels

BSE Sensex - 17557.74
 
Major Support - 17435 – 17313  
Major Resistance - 17726 – 18040 – 18523

NSE Nifty  - 5320.40

Major Support - 5290 – 5285 – 5260
Major Resistance - 5377 – 5499 – 5629 


View

Last week the markets closed with a gain along with facing resistance at the highs made in second week of July. Due to this formation the price suggests that the current range for the Nifty could be 5039 and 5350 levels if we look at the horizontal support and resistance levels. If we plot a trendline joining the Feb highs and the July highs we still are trading above the trendline and this is a level which should be watched as immediate support for the markets. So for the markets to slide down to the lower band of the range @ 5039 the Nifty would have to break down below this trend line level @ 5285. Now if we look at the upsides for the Nifty then there is an important level which the Nifty needs to breach before it could start its upward rally. This resistance comes in from the highs made last week. Incidentally this level also is a resistance from down trend line drawn joining highs made in Nov 2010 and Feb 2012. For now expect the Nifty to trade in this range. We need to wait for a breakout to decide the further direction of the markets. This is a short week with the markets remaining closed on Wednesday. Tomorrow the Inflation numbers could provide some food for movement in the markets. This is moment when Investors and Traders both need to be cautious on the moves. Investors can hold a scrip specific view. Traders should indulge in low profile positions trading minimum lots or minimum quantity. A watchful week ahead. Happy Investing & Happy Educating!