Sunday, June 12, 2011

Technicals for the Week

It was a range bound trading week with a slight negative bias. The trading range is narrowing and a break is imminent. This should give a move of 200-300 points.

1. The coming week has the Inflation Data on June 14th, Advance Tax data on June 15th and the RBI Meet on June 16th where I expect key rates to be hiked by 25 basis points.

2. The short term stochastic which are leading indicators and the MACD have given short term sell signals.

3. The 61.8 % retracement of rally from 5329 to 5605 comes at 5434 which is a key level. This is a good level to book some shorts and re-enter at 5385.

4. The Bollinger Bands hint at a bottom at 5348 as first target.

All in all, nothing much has changed.Levels on the downside are 5434 - 5384- 5328. On the upside are 5514-5550-5576.

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