Nifty Jan 2011 Technical Forecast
Jan 07, 2011, Nifty closed today 5904.60 which has broken significantly the 50 days exponential moving average (EMA) of 5992.067 and currently looking for the next support levels which is set at 5766.50 on Dec 9, 2010 and 5751.95 on Nov 26, 2010. 200 days EMA for Nifty is: 5705.162.
With the short term correction Nifty can touch 200 days EMA of 5705.162 and can enjoy a significant bounce. Until then Nifty would be trading in a range bound between 50 days EMA and 200 days EMA. If you are a speculator and looking for a clean buy signal, then it would be better to wait until Nifty touches its 200 days EMA of 5705.162 that would be around 200 points down from today’s close.
Alternatively Nifty can bounce back to 50 days EMA of 5992.067 which would be 88 points up from Friday’s close and then it may start plunging further towards into 200 days EMA of 5705.162.
Technical Levels to Watch
10 Days EMA: 6039.137
21 days EMA: 6019.960
50days EMA: 5992.067
200 days EMA: 5705.162
Support Levels to Watch
5766.50 9th Dec 2010
5751.95 26th Nov 2010
Note: This technical analysis is nothing to do with my earlier fundamental analysis. Even Indian economy is very strong; Indian Stock Market is overvalued currently due excessive foreign fund cash inflows. Fundamentally a deep correction might happen on or before the end of this year. Conservative investors to stay out stock market and invest in High Yield Fixed Income Securities.