The markets closed with moderate gains last week with healthcare, power and auto being the best performers. The Sensex was up 0.2% and Nifty, too, gained 0.2% over the week. The CNX Midcap index closed with 1.5% gain, BSE small cap gained 1% while the Bank Nifty closed with 0.2% loss. The BSE Healthcare was up 2.1%,BSE Oiland Gas gained 1%, BSE Power closed with 1.7% gain and BSE Auto was up 1.2%. The top Nifty gainers during the week were ONGC, Hero Moto Cop, and Reliance Infra while the biggest losers.
The markets recovered significantly after gap down opening in the later half of trade to close with only moderate losses. Realty, auto, consumer durables and power were the best performers in last session, while metal and capital goods lost significantly.
CURRENT TECHNICAL SITUATION:-
As per chart analysis - Nifty has given 4 consecutive close above 13 and 34 EMA on daily charts indicating bullish sign. Nifty has given closing above 13 and 34 EMA on weekly chart with red hammer pattern with overbought slow stochastic indicator and with RSI flat moving around 51 level which is indicating that Nifty is tired to move further above 5190 level. As per Monthly chart price has close below 8 EMA but above 34 EMA with facing 5 months falling resistance near 5190. As per above 3 charts analysis trend current situation is indicating that Nifty will face strong resistance around 5190. Now lets see which side data favoring from here.
FIIs bought index future worth Rs 150.34 crores on Friday and nifty future closed at 5151.15 (-0.44%) and open interest decreased by -2.72% indicating profit booking from long side. Nifty 5200 call open interest decreased after first time by 726,900 shares and 5200 put decreased by 62300 shares. Huge decrease from 5200 call indicating up move for next session. Nifty 4900 put open interest increased by 1273,950 shares in open interest creating doubt. Why 4900 put open interest increased hugely around 3 - 2.75 rs price value. AT the rate of 3 rs. Can smart money write option just before 4 days of expiry or smart money want to nifty down below 4900 before expiry. Lets consider reversal sign of market. Nifty India Vix index is at 20.58 and its RSI indicator has turned up indicating reversal in trend, Nifty put call ratio is at 1.82 also indicating extremely overbought situation and reversal any day in trend.
Now I present in front of you a magical number.
OH !!! magical number ? What is this magical number.
Magic number is 5217.
What is magic in 5217 ? I just tell you.
Nifty Magic For 2012
FNO game was started in India in full swing after 2003 … after that this strategy appeared in real value and till date working without any single mistake... This strategy works only with index (nifty) not with stocks … but investors can take full advantage of this strategy for building portfolio... Even traders also can get realistic idea of market moves like FIIs, DIIs and big players.
Magic for you.. start from 2003 ……… watch 2003 nifty Jan month high its 1105.60 … now watch data of coming months of 2003 only when nifty closed above Jan month high … If I am not wrong then it is may 2003 when nifty closing price was 1106.80 .. Means above Jan 2003 high price.. And pls watch after that nifty never came down below Jan 2003 month high on closing basis till 31st dec 2003. According to strategy it was clear signal for market player to go long after may 2003... For whole 2003 year.
Now just watch 2004 Jan high – it is = 2014.65 never closed above this level in 2004 whole year means clear signal no buy in 2004 .
2005 – Jan month high was 2120.15.. Closed above on monthly basis in June 2005 @ 2220.60...again after that never broke Jan high on monthly closing basis in 2005.. Means go long after June 2005 till dec 2005.2006 – Jan high 3005.10.. Closed above this level in feb 2006.. After that never broke the same... Clear buy signal.
2007 – Jan high- 4167 … closed above in may month 2007 … never broke after that.. Clear buy.
2008 – Jan high -6357 … never closed above this level in whole 2008... Means no buy... Only sell... Touched 2252 in that year.
2009 – Jan high – 3147.. Closed above in Apr 2009.. Never broke after that made high 5221 after that in 2009.. Clear buy.
2010- Jan high – 5310.85 closed above in June 2010.. Hit 6338 after that never broke.. Clear cut buy.
2011 – Jan high – 6200 never closed above this level in whole 2011... Means no buy... Only sell... Touched 4530 in that year.
This year Jan high is 5234(5217 spot)...Feb month closed above 5430...March month closed above 5333...April month closed above 5267 so as per above Observation, Nifty fut should not close below 5234 on month ending for the rest of the year, So on 30-06-2012 nifty future should close above 5234.But now nifty future at below 5200 since two months, So any one take risk at this level?? But dont forget one thing, history never failed till today, so hope for the best and try to follow above observation as per your risk appetite. 9 years data is in front of you …. If still in doubt then only God can save you … thanks.
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