Market Outlook 11th January 2011

On Monday, Nifty breached all barriers and closed below some of the most important support levels.

Now Nifty is at 150 DMA of 5755.

Close at such a support level is always risky for the next day and most of the times we experience another weak session the following day.

So Tuesday can be another weak trading pattern day and one may not find breather soon.

Continues closing below 150 DMA causes market to tread lower and we may move closer to 200 DMA which is at 5604.

Although 200 DMA may not be tested at all in such a hurry and market may rebound any day in between to show some relief.

Although Nifty is not exactly oversold at present and we may not see value buying at lower levels very easily.

In next 2 or 3 trading sessions we may see relief rally of some sort.

Till then happy short selling!



Nifty Pivot 5801
Support 5714-5683
Resistance 5793-5849