Nifty weekly forecast report
Nifty daily chart analysis
Nifty spot this week closed at 5879 with gains in last trading session.on daily chart see sharp short covering and liquidity driven rally after touching 3 month average of 5570.
on daily candlestick chart,nifty trading above all short term average with wide distance which suggest strength of underlying market.this is liquidity driven rally and not likely to fizzle out until there is big news/crash sentiment.
nifty weekly average is 5770.below that nifty monthly support at 5684.while in last 5595 is 3 month average.all these are buying areas for short term traders. and stoplosses for all long positions.
on daily chart indicators are in strong bullish momentum but rsi near 71 and cci neat +200 shows overbought rally.and next week expecting some correction technically but as already said this is liquidity driven run ,in that situation indicators tends to remain in overbought zones for many day.
nifty is trading at it 2012 high point which also suggest investors confidence and that why this is strong run.short sellers don’t have any place in this market!!while short selling without stoploss id complete suicide.
Nifty weekly chart analysis
this week nifty given almost 250 points run from 5635 to 5880!!this was second gaining week for nifty.on weekly chart it is look like fresh breakout as nifty closed just above April 2011 top of 5860.on weekly chart major long term averages are in range of 5300 to 5500.
on indicators side,nifty weekly rsi and cci both bullish but heading towards overbought zones.nifty weekly macd still holding buy signal given at 5160!!
Nifty monthly chart analysis
nifty in month of November given bottom 5570 and now at top of 5880 so almost 300 points plus run.so top to bottom 6% run and closed with gains which is also buy signal for investors.
nifty 5 years average now moved to 4830.on monthly chart also nifty cci is seem to be overbought.rsi and macd both bullish and with buy signals.
in history,nifty dec 2011 was bad month with 500 points downside drift.dec 2010 was positive month with 350 points rally.while dec 2009 was 250 points gain month.and 2008 was 400+ points rally month and nifty was bottomed out from longer term view in that month.
nifty and sensex both are nearly 25% up for year 2012 and leaders in Asian markets.
Nifty weekly outlook for 3 to 7 December 2012
for short term traders at current no buying is advised,buying must be done after correction only.those are longs for the target above 6000 in dec series with closing basis stoploss below 5800.for nifty 5800 to 5920 is very difficult zone so watch for that.
for medium to long term traders and investors now nifty targets are 6100 and 6335 while 5610 is support zone.around same targets we given 3-4 months back in our weekly reports!!
by pivot theory nifty next target is 6750 while 5725 is strong support and trend decider level for nifty in 2013.option traders must buy 6800-7000 call option of may-jun 2013 series on decline to encash this bull run.