Aranca India Technical Analysis Daily Newsletter – 27 January 2012 Edition
Nifty Outlook for 27 January 2012
The Nifty opened flat with a positive bias following positive cues from other Asian markets. It ended the day 31 points, or 0.60%, higher at 5,158.30.On daily charts, it ended in a candlestick pattern that resembles like a spinning top, which suggest indecision at the current level and buyers losing momentum. Also, it is approaching near 200-day SMA, after a sharp up move since the beginning of 2012. RSI in the overbought territory suggests profit booking at higher levels. Hence, if the low of the spinning top is violated that is 5,130 then, we can see the nifty correcting up to 5,060 and 4,950. The bias, however, will remain positive until it closes below the previous candle from here. On the upside, Nifty is likely to face resistance at 5,180 and 5,214 (200-day SMA). On the other side, 5,130 and 5,110 are the support levels.
The trading ideas for this week include stocks from Heavy Electrical Equipment & Auto Tyres/Rubber Products sectors. Download the report to know the stocks, their target price and stop loss, and Nifty movement forecast.
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