December 22, 2013

Weekend market update

On daily charts, nifty gained 1.7% and closed at the highest level this week. The weekly close was also 1.7% which means all gains came on Friday.

Charts point to possible formation of a higher swing low at 6100 levels. Holding this level coming week will be bullish. On the other hand, if markets close below this level this week, it will mean a lower swing high has formed.





Option writing points to support at 6200 and a cut in positions in 6300 call... this has bullish implications. However JAN series (tentative) point to support at 6000 and resistance at 6500 levels.

Weekly charts: expanding triangle is seen... this has bearish implications with a retest of 5200 levels possible. If you ignore this pattern, this swing low at 6000 becomes the support for the rally. In other words, holding 6000 is bullish.


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