January 13, 2016

Market outlook

Daily charts
- trend is down but today can be a reversal day
- markets broke 7500 but recovered and closed near day's high
- in the process, markets formed a long legged doji or hammer
- this has bullish implications provided NF can trade above today's highs comfortably
- advance decline positive for nifty stocks but negative for broader market
- option writing support at 7500 and resistance at 8000 strike price
- today there was cut in both 7500 put and 8000 call options (no inference as yet)

Hourly charts
- trend is down on hourly charts
- reversal level is region of 7600 to 7650 F
- notice steep fall and good recovery today

5 min charts
- initial bias was bullish
- fast break of initial trading range was sell signal
- breakout above 2nd box was bullish
- wild swings on both sides today
- this usually indicates trend reversal on higher time frame charts

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