Nifty Last week made a decent move from its earlier range and is heading towards its last 2 year high. Nifty has crossed some of the major resistance and gained enough momentum for further move. The results that have come up were decent and the real kick is US getting out of Shutdown. Through out the week Nifty was trading well but has created jitters on Thursday when we saw a suden correction which is nothing but profit booking despite FII's pumping money. Many experts were cautious and were talking about levels below for very short term, but FII's have other Ideas and were pumping money into market which led to Fridays violent move had shown that Nifty which closed at 6189 for the week is not ready to give up till it reachs its recent 2 year high and could also reach all time high which will be decided this week with more results to be declared this week which could set the trend. Nifty has formed inverted head & shoulder which shows a target of 6600 which is unlikely for short term, but medium to long term it is very much possibility
Weekly outlook for Oct21 - 25th
For next week I predict that market may remain in bullish zone for some time.If this momentum continues we may see Indian Market to make new high of 6350. Major support are between 5880-5930 and Major resistance are between 6210-6240.Now 6050 will act as strong support for Nifty Future.Any decline to this level could be considered as buying opportunity.A break below 6100 can move Nifty Future down and price may get support at 5980,5920 and 5880.Where as a break above 6160 would move Nifty Future higher and price may find resistance at 6240,6270 and 6320. Weekly RSI and MACD is showing extreme strength and we could see this rally continuing till 6240 which is a key level. I prefer to wait watch as I am expecting we may have reached top and correction is due at recent highs. Short term traders can book profits and can enter at lower levels.
Major Results for the week
As per the second quarter result calendar, HDFC and Asian Paints unveil Q2 results on Monday 21 October 2013. Cairn India and Wipro unveil Q2 results on Tuesday, 22 October 2013. ACC, Ambuja Cements, Hero MotoCorp and Power Grid Corporation of India unveil quarterly earnings on Wednesday, 23 October 2013. Kotak Mahindra Bank and NMDC are set to unveil Q2 results on Thursday, 24 October 2013. ITC, ICICI Bank and GAIL (India) unveil Q2 results on Friday, 25 October 2013.
Intraday Outlook
For the day Nifty is strong above 6193 and weak below 6165 levels and India VIX came at 20. Above this level one can look to buy Nifty and below 6170 we could see some weakness but 6140 - 50 level will act as a major support area. coming to individual stocks IT could be become weak on profit booking and FMCG could continue to do well. Suggest retailers to trade cautiosly and not get carried away as we get caught wrong footed.
Levels of Index and stocks for the day
For exact levels to trade above securities on Intraday basis contact vijaykumarrao.invest@gmail.com
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