Weekly Market Outlook for 10th -14th January

Nifty fell for the 5th straight session and Nifty lost 4.3% on closing basis for the week ended 7th January 2011.

The 1st week of the year was negative on the fear of interest rate hike, softening of commodity prices and poor results by MNC's like Samsung.


FII's now expectoing a bounceback in US and EU economy and hence they are withdrawing their investments from India and investing it back home.

Overall markert picture is very bleak now and we are expecting more selloff in the coming days.

Nifty breached 100 day EMA and managed to close near it due to average closing factor.

Fibonnacci supports for the NIfty are very close at 5895 and 5864. It may easily be tested on Monday.

If Nifty fail to show support at 5864 level and closes below it then we are in big trouble and Nifty may fall down to test 150 DMA at 5776.

The support line drawn from recent lows also signifies a support ;evel near 5830 which may entice many traders to initiate fresh longs for the intermediate term.

The best strategy is to wait on the sidelines and wait for fresh uptrend to accumulate blue chips at reasonable price.