Imporatnt week for Direction

19-12-2010

Hi

Happy Trading for coming week. Week starting from 20^th December 2010 will be most important week. Nifty in last week has moved up by 66 points only. We have seen no major breaks in last week. Nifty has not breached recent low of 5690 and had made low of 5721 which is a good sign for moving up. But Nifty has major resistance at 6040 levels or we can say that recent high on 6^th December 2010 i.e. 6069 is crucial level for nifty.

One should not go for long unless Nifty closes 6040 levels – decisively.

If we consider recent high of 6^th December 2010 at 6069 levels and recent low of 10^th December 2010 at 5721 levels and take a retracement nifty has retraced up to 61.8% level which comes to 5950 levels. On last day of week nifty has closed at 5948 levels i.e. exactly at 61.8% retracement level. So closing of Nifty on Monday and Tuesday will decide the fate of the weeks to come. If it close above 5950 levels than it will definitely try to touch recent top of 6069 levels making double top position. Nifty may take pause near to this level and than may take decisive move.

So please watch Nifty on Monday and Tuesday very closely. Levels of 5721, 5950, 6040 and 6070 are very important levels to watch for any trading/ investment decision.

In last week I have picked up two shares mainly i.e. Reliance and Wipro. Wipro has almost achieved it’s target and Reliance is still above 1040 levels and may cross it’s target of 1080 very soon.

6040 level is important level now.

Watch Tata Steel for trading purpose and it may go up to 680 levels.

Thanks and please give your reviews.