NIFTY OUTLOOK

On Friday, Nifty Future opened firm and made a high of 5367 and pulled back to close the week at 5354.

The weekly close should be considered strong and possibility of continuation of up move in the next week remains open.

Would like to inform the formation of an inverse Head & Shoulder with neck line at 5372. Incidentally, this neck line acted as a resistance for Friday's trading.

In the coming week, we need to move above this level and remain to close abv so to achieve pattern target of 5770 in the coming days/weeks.

While we will be in the midst of result announcements during this period, achieving this target will largely depend on the results announced by the leaders. In anticipation, Infosys did make a new 52 week high, but reluctance on the part of Reliance to participate in this buoyancy remains a concern.

On the otherside

The breadth since June has been poor. That is not such a good sign for a market trying to breakout into new 52 week highs.

One more point to note is that 60% of NSE stocks are below ADXR reading of 25.

Whether the markets will take out the previous high is the question on everybody's mind. But I don't think the question is that important - breaking out is no big deal, the question is of sustainability. Will the markets stay above 5400?

The current conditions don't support this scenario.

there is a contraction in the number of stocks making fresh 52 week highs. We are way below the

January figure If we were really breaking out then we must see an expansion in this number and not a contraction

However the negative divergences are intact. Volumes too were very low. Breadth improved.

On the downside below 5300 will open for 5225 and 5165 even 5050

One more scenario the range of 5210-5372 still needs to be broken .

Above 5378 We May See 5400,5423,5445… Below 5290,We May See 5247,5225,5200….

LAST CLOSE@5352 (+55 POINTS)

LAST HIGH@5359 LOW@5330

WEEKLY HIGH@5359 LOW@5225

5DMA@5283

20DMA@5279

50DMA@5143

200DMA@5086

5DAY RSI 68 AND 14DAY RSI 60

INDICATES NO SIGNALS.

WEEKLY KEY RESISTANCE@5422

WEEKLY KEY SUPPORT@5155

EXPECTED RANGE 5288-5400

OUT PERFORMERS FOR 12/07/2010

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MID-CAP BANKS AND FINANCE

UNDER PERFORMERS FOR 12/07/2010

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METAL STEEL AND OIL