Friday, August 03, 2007

Nifty this week 30th July - 3rd August

Highlights of the week for the NSE ...

- shedded almost a percent at 4401 end of the week.
- Weekly charts for the past 18 months shows a small downtrend starting last week with a bearish engulfing candle.2 year weekly chart shows there is a good support around 4180 levels on the weekly basis.
- YTD daily sharts shows we are in a short term down trend with resistance around 4450 (20EMA), 4500 (trend line starting the beginning of this rally in April) and resistance around 4370 (50 EMA),
- Should trade between these ranges, breaching of any of these levels on higher volumes will indicate the subsequent direction. Though the outlook is certainly bearish.

BANK Nifty -
- Up almost 150 points (though on lower volumes.)
- Bank nifty is in weekly downtrend with a huge bearish engulfing candle last week.
- Weekly resistance is around 6900 levels (looking at 18 months weekly trendline.)
- A very good support at 6600 (50 day EMA.) and a weak support at 6820 (20 ema)
- Should trade between 6600 to 6900. Crossing of any of these levels on higher volumes will indicate subsequent direction. The tone is still bearish.

Reliance -
- Down almost 65 Rs. for the week.
- A strong weekly support at 1750 level (trend line for the last two years and 50 EMA.)
- A weak resistance at 1825 and a strong support at 1800 levels (trendline starting last july.)
- On a daily chart shows downtrend last week. (with lower volumes on up days and higher volumes on down days.)
- A little bearish, this stock is going to be pivotal in the coming week especially owing to very high weightage in the nifty.

IT stocks -
- Took a beating last week. Nothing much to write about.

State Bank -
- Up almost 135 Rs. on good volumes on weekly charts.
- Shows a strong support around 1550 mark from the daily trend line and 20EMA.
- Resistance around 1650ish.
- This looks strong, unless it takes a beating with others.

In short the next week will pan out depending upon how SBI and Reliance perform. SBI needs to maintain its rally and reliance needs to take a support at 1800 levels.

Global cues indicate weak markets in the coming week. The mild recovery Europe posted early this week was washed out yesterday. Asia is not significantly recovering and S&P500 closing below its 200 EMA indicate a nervousness in the global markets.

Disclaimer: The stocks/indices discussed here are a personal opinion and for informational purposes only. This should not be taken as investment advise in any way. Investments should be done based upon personal opinion and risk appetite.

Credits: All the charts mentioned are taken from

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