Weekly Review for the Week December 7th -11th 2009

by khalid on 07/12/2009 · 0 comments

We said ‘The market unfolded beautifully as expected as the market was overbought and many of the sectors were at their natural resistance zones. Technically the market has taken support near the psychological 4800 mark and has closed right on our support of 4940 but structure wise all is not well as yet and so any up moves that we may see in the market would be a suspect as 5100-5150 is still stiff resistance zone to deal with and the down side seems to be open and I would not be surprised if we get to see 4744-4500 levels in the days to come’

The market has unfolded and has closed right in our resistance zone at 5109. The market is increasingly finding it difficult to climb and has been trading in the sideways zone for the past three weeks but the undercurrent witnessed is strong so far… Technically it has seen a high at 5181 which is a double top and due respect should be accorded to the double top as long as it holds. Technically 5100 is a strong support but looks like the support is under threat and possible we may see some slide in the days to come and if it happens then I would say 4850 and 4784 are very strong supports to deal with and on the upside if 5181 gets taken out then next logical target is 5250.

The logical target on the downside for the Nifty is 4976-4936-4850-4784 and resistance at 5250

The logical target on the downside for the Sensex is 16694-16586-16281-16025 and resistance at 17467

From a trading point of view I would continue to book profits on the way up…it never hurts.

Source : Prakash Gaba

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