"WEEKLY MARKET OUTLOOK & TRADING IDEA FOR THE WEEK 21.08.2012 TO 26.08.2012"

The 30-share index, Sensex gained 133.34 points, or 0.76%  to 17,691.08 for the week ended Aug 17, 2012. On the other hand, the broad based NSE Nifty gained 45.90 points, or 0.86%, to 5,366.3 during the week.
VIEWS FROM DIFFERENT BROKING HOUSES:
HDFC SECURITIES: While the markets seem to be consolidating at current levels in the last few sessions, the underlying trend remains up. Immediate upside targets for the Nifty in the coming week are at the next resistances of 5400-5445. Weakness could emerge if the immediate supports of 5341 are broken”.
KOTAK SECURITIES (Dipen Shah): Markets continue to await fiscal reforms, which, we maintain, are the pre-requisites for the markets to move up sustainably”.
BONANZA ONLINE: Nifty showed strength for 3rd consecutive week. Buying interest may be continuing above 5400 levels. If Nifty do not maintain above 5400 levels then profit booking may also be seen. Traders should be cautious in 5350-5400 zones. For trading during the coming sessions, trend deciding level is 5350. If Nifty shows strength above 5350 levels then we may see rally till 5400/5450/5500/5540. If Nifty doesn’t sustain above 5350 levels then selling pressure till 5300/5250/5180 may also be seen.
Duration
Action
Entry Zone (NF)
For Target of
Stop Loss
For Tuesday
Buy
5365-5385
5435
5340
For the Week
Buy
5350-5390
5450-5480
5330
GEPL CAPITAL: The resistance of 5400 proved as a difficult one to cross for Nifty and it concluded the day off its day's highs with modest gains. On the higher side the level of 5400 would continue to serve as a severe resistance to cross. Only a break out and sustenance above 5400 would ensure further upside till 5460 to 5480 range. However on Friday it has breached an important Channel support, which may be taken as initial sign of short term weakness. On the downside it has important support placed at 5290. Any breach of this support level would negate the short term bullishness and Nifty may come down to 5230 to 5215 range. We recommend a strict stop loss of 5290 for existing short term Nifty long positions”.
KARVY STOCK BROKING:Long positions can be assumed in pharma, IT, auto, FMCG, capital goods, energy and BFSI sectors if the Nifty holds 5,280-5,250 levels. Short positions can be assumed in metals, telecom and cement if the Index fails to sustain above 5,430-5,450 levels or below 5,250 levels. Overall, we expect the Nifty to trade in a broad range of 5,250-5,450 levels this week”.
ICICI SECURITIES: “The Nifty may trade with a positive bias till it holds above 5280. Immediate resistance for the Nifty lies at 5400. A move above these levels may trigger fresh momentum towards 5460. The Bank Nifty is likely to find immediate support at 10200. Till the time it holds this level, it is likely to trade in the range of 10200-10800 with a positive bias. A move below 10200 may increase the selling pressure”.
SMC TRADEONLINE (WISE MONEY): “The market expects a rise in volatility. If the Index slips below the 5300 level, it could gradually slide to 5200 levels. Conversely, a sustained move beyond 5350 levels should see Nifty climbing 5500 levels. Technically, the Index continues to trade above all its moving averages, of 200-day and 100-day EMAs, indicating a bullish scenario. On the other hand, sustaining 5300 levels is extremely crucial for a continued uptrend. On the technical front, the Nifty is finding support around its short term averages of 5300 indicating immediate strength; however, any breach below the same would induce profit taking towards the support zone of 5200markwhichwill remain a crucial point of observation for the week”.
ANGEL BROKING (Technical): “The 'Higher Top Higher Bottom' structure in weekly chart is yet to be confirmed as our markets struggle to decisively cross and close above the 17727/5386 level. Going forward, we continue to maintain our view that bulls should wait for a closing above 17727/5386 level to aggressively create long positions. This would also confirm a breakout from the "Downward Sloping Trend Line" formed by joining the highs of 21109/6339 (November 5, 2010)-18524/5630 (February 24, 2012). Strong buying by the bulls is expected once markets close above 17727/5386. This may push indices significantly higher to test their next resistance levels of 17900-18050/5450-5500 and the possibility of testing further higher levels cannot be ruled out. At this juncture, the daily chart candlestick pattern depicts a 'Spinning Top' formation. This pattern signifies scepticism amongst market participants. Hence, unfortunately if markets sustain below Friday's low of 17622/5356 level, then we may witness a sideways corrective price action in coming trading sessions. In this case, indices may test 17471/5294 level. A breach of 17471/5294 will indicate complete loss of current positive momentum and our benchmark indices may drift towards 17313-17208/5260-5220”.
MICROSEC SECURITIES: “For the coming week, first support of Nifty is at 5290 and the resistance is 5400. If Nifty breaks 5290, it may further go down to 5250 and then 5200. However, if Nifty is able to sustain above 5400, the level of 5440-5510 would become the next target”.
INDIRATRADE SECURITIES: “For the next week, Nifty likely to trade in the range between 5450-5550 in the upper side and 5250-5100 in the lower side”.
R K GLOBAL:In the week ahead, as we go ahead, the July consumer price index due on Tuesday will be the focus for Indian bond and FX markets in a holiday-shortened week. CPI data comes a week after the crucial wholesale price inflation data showed an unexpected fall. The debate will keep following in the coming week as to whether the stock market is on a course to new highs, or just in the final stages of a head bottom rally that will end in pain when September rolls around. We advise clients to remain cautiously optimistic”.

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