Monday, February 13, 2012

EOD Analysis For Feb 13th 2012 and Outlook For Feb 14th 2012

Well the OI in Nifty futures was pretty much unchanged from previous levels. Sectoral churns as usual and VIX a shade below 24 yet. Critical levels and outlook remain unchanged from Friday's posts. The way BNF bounced back from the lows of the day is amazing. [The free flow of liquidity from central bankers almost always finds its ways into stocks/commodites and not translate into business credit as outlined in the weekend update!]

For upside: Resistances remain at 5408-5440-5480-5532
2 consecutive closes over 5408 will in all likelihood test 5532 on the upside

For Downside: Initial signs of weakness below 5325 and 2 consecutive closes below 5280 can retest the crucial support band of 5032-5092. As mentioned on Friday, expecting the crucial band of 5177-5196 to hold on closing basis until 16th Feb EOD.

8 sessions to go prior to expiry day and action on either side can be anticipated.

Are markets out of the woods - I don't think so but still no clear signals of danger; the longer markets take to correct, the sharper will be the ensuing correction.

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