Saturday, June 13, 2009

Outlook for next week:-
Nifty (4583) Support: 4435/4190/4090 Resistance: 4660/4695/4789
Adv-Dec Ratio - NSE Adv 317 Dec 1128 BSE Adv 737 BSE 2276 (On weekly basis)
Nifty has closed just 3 points down on weekly basis and it shows supply from higher levels. Nifty did break above 4650 but could not sustain which gives sign of weakness. DOJI pattern at such high level after 14 weeks of rally indicates great pressure from both bulls and bears but no trend emerging, so indecision. Breadth is turning weak and Nifty breaking and sustaining below 15EMA at 4440 can bring a big correction.

Gold View:-
Gold has formed a bearish H&S formation, the downside can be $880-890 but even lower levels can not be ruled out. I have given bearish outlook on Gold twice before but both didn't go exactly as per the prediction, so this is just an attempt to update with recent graph. Gold has been unable to trade past its AllTimeHigh at $1032 even after 15 months. For further rally, it has trade past $1000 consistently and sustain there, else correction in Gold can be big in my view, $850-860 has been big support and breaking that we may even see $760

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