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NIFTY-JAN F&O-1ST BUYING OF 21-01-2011-COVERING

NIFTY JAN F & O(BOUGHT ON 21-01-2011)-COVER AND BOOK PROFIT IMMEDIATELY-CMP-5738(WE MAY BUY AGAIN BUT FIRST BOOK PROFIT NOW)

Mid-session outlook(24-01-2011)

Following lines were clearly told in weekly today morning:-

"Firstly rally expected in the begining of coming week"

Rally seen immediately today morning and Next resistance is at 5752. Nifty traded little below it for the last one hour and and crossed now. Nifty sustaining above 5752 will mean crossing of strong resistance as well as short term trend turning upward.

As last one hour intraday charts are suggesting consolidation therefore expected that Nifty will cross and sustain above 5752.

Nifty(Spot)-Trading Strategy for 24-01-2011

Nifty(Spot)-Trading Strategy for 24-01-2011

H6 5740 Trgt 2
H5 5730 Trgt 1
H4 5720 Long breakout
H3 5708 Go Short
H2 5704
H1 5700

L1 5693
L2 5689
L3 5685 Go Long
L4 5673 Short Breakout
L5 5663 Trgt 1
L6 5653 Trgt 2

Trading Levels for 24-01-11 & Next Week Levels

Nifty Spot Levels for 24-01-11

R3 5761
R2 5739
R1 5718
AVG 5696
S1 5675
S2 5653
S3 5632

Nifty Jan Futures Levels for 24-01-11

R3 5775
R2 5746
R1 5723
AVG 5694
S1 5671
S2 5642
S3 5619

Bank Nifty Jan Futures Levels for 07 -01-11

R3 11144
R2 11036
R1 10966
AVG 10858
S1 10788
S2 10680
S3 10610

Nifty Spot Weekly Levels (24 Jan to 28 Jan 2011)

R3 5879
R2 5813
R1 5755
AVG 5689
S1 5631
S2 5565

Pull Back rally is Confirm

Weekly Analysis- 24-01-2011 to 28-01-2011

It is the character of bull rallies that they are tend to test 200-Day EMA in intermediate term corrections and if primary up trend is continued then reverse to rally after some consolidation near it. AsJan 2011 fall was on the back of serial negative news blast without intraday genuine selling patterns and Indian markets tested 200-Day EMA(today at 5650) and after 5 sessions hovering near about closed above it last Friday therefore Long term trend is still up, Intermediate term and short term trends are down.

Previous week and last Friday candle is Doji which means uncertainity in markets but intraday patterns of last Friday and last 5 sessions is clearly suggesting consolidations. Although Weekly and Daily charts are not signalling any side moves but intraday charts are confirming consolidations therefore rally will be seen in the coming week. Consolidation developd at lower levels after every fall and it is shown in following last week intraday chat ;-

1-Genuine Intraday Consolidation Patterns in Last 5 Days chart:-

(Just click on chart for its enlarged view)

10 Days intraday charts are showing consolidation patterns:-

1- Rounding bottom support.
2- Double bottom support at 5630
3- Falling channel break out at 10 days intraday chart and whole day trading above it last Friday.

2-10 Days Intraday Consolidation Patterns chart:-

(Just click on chart for its enlarged view)

Wave 3 is on and corrected according to its nature. As negative news flow was strong therefore down moves were sharp and 200-Day EMA tested and Nifty hovered around it last week before weekly closing above it. This fact should also be kept in mind that Nifty tested 200-Day EMA in May 2010 before 1553 Points Rally and until nifty will not sustain below it till then any type od down move will not be considered. Falling Channel range bound moves in Last 4 months and after testing lower line of channel Nifty has to sustain below it also for any down move confirmations but support seen here in whole last week therefore upmove within on going channel will be seen first.

3- Wave3 Testing & Sustaining above 200-Day EMA:-

(Just click on chart for its enlarged view)

Firstly vertical falling channel formation in Jan 2011 and after that narrow range trading seen within 5630-5745 in last week. Nifty got strong support at 5630 and good consolidation range is 5630-5700. Jan 2011 Falling vertical Channel broken out last Friday when Nifty traded whole day above it with intraday consolidation patterns within 5680-5715.

4- Jan 2011 Correction and last 6 sessions Consolidation CDhart:-

(Just click on chart for its enlarged view)

Coonclusions

Short term and Intermediate term trends are down but long term up trend is intact after Jan 2011 1st half cracking down. Nifty got strong support at 5630 and last week good consolidation seen within 5630-5700. 200-Day EMA is today at 5650 and consolidation seen its near about therefore long term up trend is safe. As good support and consolidation in last week and Jan 2011 Falling vertical Channel broken out last Friday when Nifty traded whole day above it with intraday consolidation patterns within 5680-5715 therefore;-

"Fistly rally expected in the begining of coming week"

As intermediate term correction completion signals in last week therefore;-

"Strong Pull Back rally will be seen"

As good consolidations at lower levels therefore:-

"Whatsoever may be RBI credit policy on 25th Jan 2011 but rally will be seen after its declaration"