Markets Next Week: Technicals

The rally took the market to 5178. How are we placed technically. Lets take a look at few of the Technicals which could give us a clue about the markets.1. The lower end of the Bollinger Band was touched and at around 4950 and then the markets rebounded. The Bollinger bands had narrowed and now they have started widening. The upper end has moved to 5208 from 5181 and the width was around 230 points when the bands were narrow. This could mean a rally...

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UP, UP and AWAY

It was a mind-blowing rally on D-Street. The Nifty rallied to close at 2009 closing high of 5178. Santa Claus had come to town. Lets see where we can go from here.It was a Bear Trap nicely set by having huge OI built at 5000 and 5100 calls. This is the third month running that OI has been used to mislead the punters.The Markets rallied as anticipated from 4944, key support areas. They retraced all the losses made in 5-6 sessions in a couple of sessions. The Faster retracement theory states that this is a fresh up move.The FIIs made huge purchases...

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Dollar Index Rises, Nifty down

Last week, we had spoken about the Dollar Index rising and its implications on our markets. The markets shed wait in the last 2 trading sessions and the Nifty is now at 4987. So, where do we go from here?1. The Nifty broke the support line from the November lows. The support at the trend line joining the lows from July comes to around 4860. This is a very crucial support line, breach of which means the rally from March lows may be over.2. The 50 EMA at 4990 and 20 EMA at 5056 have been breached. The 50 EMA is a very strong support and the markets...

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Watch the Dollar Index

The Indian markets ended almost flat for the weekly forming a weekly doji. A Doji depicts indecision and usually signifies a top or a bottom.The Nifty made a triple top at 5182. So does this mean the rally has ended?There just might be juice left for 1 final blow out rally upto 5350 or 18000 sensex. For that to happen, the indices may need to dip a bit.1. The max open interest is at 5200 call for December series and 4900-5000 puts.This means lots of people have interests (Option writers are usually big institutions) to cap this up move at current...

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