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Sunday 16 October 2011

Nifty - Weekly Review - 10th to 14th Oct 2011

Nifty Weekly Review

The Nifty ended the week on 14th Oct 2011 with a hefty gain of 244 points over the last weekly close. This was a really nice comeback on the back drop of a 55 point loss during the previous week. Earlier in the week, we did indicate that the Bulls were on the roll and that the positive bias would continue. The markets did oblige. 

The trading range of the Nifty during the week was from a low of 4882 to a high of 5141 which works out to +257.  Also to be noted is that we never did close below the last weekly close, which is a very very positive indicator.



 In the above weekly chart of the Nifty, it is clear that we are at the nearest point to the falling EMAs in the very recent past. This makes it our best chance to break out of the near term trading range and take out 5200 in the very near future. 

This also indicates that if in the next week, we are not able to break out of 5200, then we will most likely retest the near term lows, as indicated by the falling Bollinger Bands.

So the best strategy, would be to buy 5200 puts when the Nifty is trading above 5170 and wait till expiry. This would limit the risk with a reward potential of over 350 points. We will be on look out for this opportunity during the coming week.

Happy Trading !!!

Bullish looking stocks for the next week

ADANIPOWER AHMEDFORGE APCOTEXIND ASHIANA ATFL ATLANTA DHANUKA EIMCOELECO GRAPHITE GREAVESCOT HINDUJAVEN HINDZINC JUBILANT KIRLOSENG KSK KTKBANK MCDHOLDING OMNITECH PRADIP SURYALAXMI SURYAROSNI WHIRLPOOL
 

Bearish looking stocks for the next week 

AMARAJABAT BHAGWATIHO EMCO GAYAPROJ HCL-INSYS INDIANB JMCPROJECT KIRLOSIND MAHINDFORG MANGLMCEM PLASTIBLEN PREMIER SIYSIL UCALFUEL

For cash market recommendations see our Daily Pre Market calls on NSE

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Disclaimer : We express our opinions on this blog primarily as a method of record keeping, i.e. archiving what was our opinion about the markets on any given particular day end. As such, trading in derivatives can be extremely dangerous to you and your finances. We strongly advice you to consult your financial advisor before trading based on the opinions published on this blog. We shall not be held responsible, under any circumstances, for any financial loss or profit, that may be accrued due to your trades being affected by our opinions.