Saturday, December 24, 2011

Market trend for next week

For the coming week, Nifty is expected to remain choppy inthe range of 4,630 and 4,850. Important resistance to watchfor the week is of 4,770 on a close basis. Trading above thelevel of 4,770 will attract short covering in the market and in that case markets can extend its ride minimum to the level of 4,950 and maximum 5,050 on higher side. Closing below the level of 4670 will be the first alarm to bulls and further slippage below 4,630 will be hard landing on the bulls, selloff can extend to the tune of 4,550. Extension of the slippage beyond the level of 4,550 will find a rough patch in the market exposing the crucial depth of 4,430 and 4,350 on the lower side. However, if Nifty slips towards 4,670 early in the week might find a soft patch, prices can turn higher hence traders should look for initiating longs at 4,670.Market reversal stands at 4,670 on close basis. Decisive close below 4,670 will signal potential reversal in trend, traders should look at reducing long position below the same.