Nifty Weekly outlook and trading range for the week 20-04-2012 to 27-04-2012.

Markets Last Week:- Indian Markets extended its previous week gains to end higher for the week, on the back of interest rate cut by RBI and better Q-4 results from several companies, with Nifty adding 1.60%. Nifty opened the week marginally lower but recovered to close with gains of 0.36 on Monday and added more gains of 1.22%, after RBI reduced Interest rates after a gap of 3 years on Tuesday. Bucking global weakness Nifty managed to add marginal gains of 0.20% on Wednesday and 0.60% on Thursday. Finally, after four day’s of gains Nifty witnessed profit booking to lose 0.78%, amid some controversial trades in Infosys Futures and Nifty Futures, on Friday.

Last week we have written, "Nifty may trade in a range of 5420 on the higher side and 4995 on the lower side. Immediate resistance for Nifty will be 5235 and a break out above 5235 will take Nifty to 5295-5355 levels, whereas 5180 will act as immediate support”. We also said to our paid subscribers that, “If Nifty trades at 5225 and closes above 5238 for two days it will face further resistance at 5255-5270, 5295, 5336-5350”.

Check the power of our accuracy in the weekly data as Nifty made weekly high 5342.45 just 6.45 points to our level of 5336 and weekly low of 5183.50, almost exact to our support level of 5180. Nifty opened the week in negative at 5190.60 to hit weekly low of 5183.50, just 3.50 points above our immediate weekly support of 5180 and recovered to close at 5226.20 on Monday. Nifty witnessed volatile trade on Tuesday, to open gap up at 5266 to trade volatile on the back of RBI policy meet and closed at 5289.70, just 5.30 points to our first major resistance of 5295. Extending its gains Nifty closed at 5300 and further added to hit weekly high of 5342.45, once again just 7.55 points below our level of 5350 on Thursday and closed at 5332.40. Finally, after trading in a small range of 5336-5311 in the first half of the day, Nifty witnessed profit booking in the second half to hit low of 5245.45 and finally closed the week at 5290.85.

Our premium subscribers used volatile trading on the week to make an approximate profit of 5,10,890/- (Rs.37,500/- in Index Futures, Rs.3,68,625/- in Stock Futures, Rs.16,540/- in Stock Cash and Rs.88,225/- in Options) for the week in Intraday trading, with the help of our Technical levels and calls we provided. "Still searching for exact Technical Levels and Calls" Join our Premium services immediately, which were revised to suit all type of traders to get accurate calls and make huge profits every week. The details are available at our subscription section: http://nseind.blogspot.com/p/subscription_03.html, which provides an opportunity to earn more than one lakh per week, do not miss it "we don't provide free trials we believe in delivering results".

Nifty levels for the week 20-04-2012 to 27-04-2012:- For next week, which will be the derivative expiry, Nifty may trade volatile in a range of 5550 on the higher side and 5020 on the lower side. Immediate resistance for Nifty will be 5320 and a break out above 5320 will take Nifty to 5395-5???-5??? levels, whereas 5260 will act as immediate support and a breach of 5260 can drag the Nifty to 5185-5???-5??? levels.

We clearly said last week “investors will closely monitor further economic data from US and Europe for next direction of western financial markets. Back home, RBI credit policy on 17-04-2012 will decide the next direction of Indian Markets with most of the investors looking for a 25 bps cut in Interest rates”. We also advised all our clients and investors to take long positions at 5190 in Nifty Spot and advised positional traders to take long positions in Nifty Futures at 5205. Markets reacted exactly to our predictions, with US and European markets witnessing high volatility due to mixed economic data. Back home RBI surprised markets by 50 bps cut in interest rates after a gap of 3 years, with Nifty Spot and Nifty Futures exactly responded our prediction by hitting weekly high of 5342 and 5360 respectively, to give almost 150 points profits for positional traders in the week.

Now going forward, economic data from US and Europe, particularly Euro-zone debt crisis will decide the next direction of western financial markets. Back home, Q-4 results and economic reforms from government will be major triggers for the markets in coming days. Investors and traders will also closely monitor the 200 DMA of Nifty for next direction of Indian Markets, as Nifty has not closed below that level in 2012. Any further positive global or domestic developments will take Nifty near to its 500 DMA of 5415 and sustaining above 5415 will be crucial in coming days. Whereas on the other side any negative developments, will take Nifty to its 200 DMA of 5140 levels and breach of 5140 will invite panic selling in Indian Markets till its 100 DMA of 5085. I request other analysts to post your views and comments regarding this observation to tips.nseindia@gmail.com.

Note: DMA = Daily Moving Average, WMA = Weekly Moving Average.