Market Outlook 12th Jan to 16th Jan.

Daily chart

Nifty has broken trend line support of 2910 and after 9 September 2008 only twice Nifty has broken 55 EMA and again started trading below that. Nifty has Major support at 2747 if it breaks on closing basis then we may see October low (2252) again in short term. Market will be bullish only above 3065 which is 55 EMA. Currently all indicators and oscillators are in negative zone and by looking at all this evidence upper side movement looks very remote and do not hold your longs if breaks below 2747 on closing basis.

Daily Chart Support:- 2747 on closing basis

Daily Chart Resistance:-3065 on clsing basis

Weekly Chart

Nifty has formed double bottom on weekly chart at 2810 level which will worked as a strong support for longs. Weekly RSI, Stochastic is in negative zone and MACD is in positive zone. By looking at weekly chart it looks like there is some amount of consolidation faze is on and moving northward is quite remote like daily chart. One thing to note here is 13 weeks EMA which is 3053 level will work as a good zone for longs. After 8 august 2008 Nifty has tried so many times to cross 13 Week EMA but failed in all time.

Weekly Chart Support:-2810 on closing basis

Weekly Chart Resistance:- 3053 on closing basis

Conclusion

Nifty has two major support on closing basis i.e. 2810/2747 and Major Resistance on closing basis is at 3053/3065 either side breakout will give us continuation of trend.

One more conclusion is if Nifty breaks below 2810 but remain above 2747 it indicates start reducing your long position and be cautious.

Happy Trading to All.

Dhawal Joshi