NIFTY weekly wrap: 07-December-2012

Previous week, our observation was, "Buy the dip and book profit at high should be the strategy for the week. Do not short until chart shows clear reversal sign. Important levels at higher side are 5910/5930/5950/5980/6045/6080/6145"

Nifty exactly resisted at 3rd level of 5950 on Friday before showing some profit booking.

Now, important question, is the sell-off at last hour on Friday early indication of reversal?

It is too early to say "Yes". There is no reversal sign in weekly chart of NIFTY, although in Daily chart bearish candle formed after "Dragonfly Doji".

In the chart above, it is clearly seen that Nifty tested the red line support area but could not break the line. Only closing and sustenance below the red line (5810) can be considered as reversal from the current upmove.

We also observed  "This up-move is going to stay for few weeks more although at higher level it may show some weakness"; and we are still with this view. Intraday corrections are inevitable which can be used to buy until NIFTY closes below NP-SAR.

Important levels on downside are 5900/5870/5830/5810/5780.

Please visit this space for near perfect trade setup for the day and Nifty Pulse Page for free calls. 

Wish you happy trading !!!