Nifty Weekly outlook and trading range for the week 13-08-2012 to 17-08-2012.

Markets Last Week:- Indian Markets closed positive for the second week in a row on the back of strong global markets and the new Finance Minister P Chidambaram commented that his priority would be to unveil path of fiscal consolidation and speedy economic reforms, with Nifty gaining 2.01% for the week. Nifty snapped last weekend selling to open gap up and rallied further to close with strong gains of 1.28% on Monday. Nifty extended its gains to hit one month high to close with gains of 1.03% on Tuesday. However, Nifty witnessed choppy trading for the next three days, with selling pressure at higher levels to close flat with 0.02% gains on Wednesday and lost 0.28% on Thursday. Finally, Nifty continued its choppiness amid weak European markets and closed flat with loss of 0.05% on Friday.

Last week we have written, "Nifty may trade in a range of 5460 on the higher side and 4970 on the lower side. Immediate resistance for Nifty will be 5240 and a break out above 5240 will take Nifty to 5310-5385”. We also said, “Nifty trades at 5237 and closes above 5247, for two days, it will face further resistance at 5268, 5307, 5349, 5390-5397.

Check the power of our accuracy in the weekly data as Nifty made weekly high of 5377.60, just 7.40 points below our resistance level of 5385 and weekly low of 5260.85, 7.15 points below our level of 5268, which acted as support on reversal. Nifty opened the week gap up to hit weekly open low of 5260.85, and closed at 5282.55 on Monday. Adding further gains Nifty rallied to hit 5350, exact to our level of 5349, on Tuesday and closed at 5336.70. After hitting weekly high of 5377.60 on Wednesday, Nifty witnessed selling pressure to end flat and finally markets witnessed another choppy day on Friday as Nifty closed the week at 5320.40.

Our premium subscribers used yet another stock specific range bound week to make an approximate profit of Rs.5,13,830/- (Rs.24,750/- in Index Futures, Rs.4,18,550/- in Stock Futures, Rs.22,280/- in Stock Cash and Rs.48,250/- in Options) on 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 13-08-2012 to 17-08-2012:- For next week, Nifty may trade in a range of 5580 on the higher side and 5060 on the lower side. Immediate resistance for Nifty will be 5350 and a break out above 5350 will take Nifty to 5415-5???-5??? levels, whereas 5290 will act as immediate support and a breach of 5290 can drag the Nifty to 5225-5???-5??? levels.

Last week we said, “continuation of the massive gains in Western Financial markets will be decided on further steps to tackle euro-zone financial situation by policy makers and economic data will play crucial role on further up move. Back home, Indian markets will rely on global cues for next direction, as there was no positive news from the Government on policy issues”. We advised our paid subscribers and long-term investors who have take long positions at 5050 to book partial profits around 5350 on Wednesday with revised stop loss at 5290. We advised positional traders who have taken long position in Nifty Futures at 5180 on Friday to book partial profits around 5380 on Wednesday and advised to take short positions at 5385. Markets reacted to our expectations with European markets hitting fresh four month high and back home Nifty Futures giving almost 250-270 points to our positional traders last week.

Now going forward, Western Financial markets will depend on further steps to tackle euro-zone financial situation by policy makers and economic data for further rally. Back home, Indian markets will rely on global cues and policy measures by new Finance Minister will have close watch by FII’s, as they are buying in Indian markets for the past few weeks. On Technical side 5260 will act as strong support for Nifty while 100 DMA is well above 200 DMA and if markets trade positive, Nifty could see 200 DMA crossing 100 DMA in coming days, which will be medium term bullish sign for the markets. Any further positive global or domestic developments will take Nifty to its 500 DMA of 5395 and closing above 5400 will lift Nifty near to its 2012 high of 5630. Whereas, on the other side breach of its 5260 will invites selling pressure till 5175-5145 in Nifty Spot. 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.