The 30 share index, Sensex plunged 848.07 points, or 4.04%, to 20,156.89 in the week ended Nov. 12, 2010. On the other hand, the broad based NSE Nifty lost 240.8 points, or 3.81%, to 6,071.65 in the same period.ANGEL BROKING: Mileen Vasudeo, Technical Analyst, Angel, while commenting on the outlook for next week, said: "The move which started from 19,769 to 21,109 / 5,937 to 6,339 levels has retraced marginally beyond 61.8 % (20,280 / 6,090) and the indices have closed between the crucial Gap area support zone of 20,080 to 20,267 / 6,032 to 6,084 levels. Any close below the upward gap area of 20,080 to 20,267 / 6,032 to 6,084 levels formed on the daily chart, would see the indices retest the prior swing lows of 19,769 / 5,937 or may even test lower levels of 19,464 - 19,076 / 5,845 -5,726. On the flip side, if the indices manage to hold the upward gap area on the daily chart, a bounce up to 20,521- 20,668 / 6,175 - 6,210 levels cannot be ruled out."
PRAKASH GABA: Prakash Gaba, technical analyst and trader, Gaba Financial Advisors, while commenting on market outlook for next week, said: "Technically the market is in a buy mode and we are shy by just 18 points of the all time high. (a) the market has run up too fast in the last 5 trading sessions (b) the bar generated is a doji star which is an indecisive bar capable of stopping the upward movement and so now if the market has to go up then it requires tremendous strength which I doubt it and so I would not rule out a consolidation if it happens".
He also added "Technically the market has generated a classical reversal pattern on the weekly front and right near the all time high which makes it more potent. Technically the market has no business to go up and should ideally shed some weight, we are very near the psychological 6,000 mark and so I would be not be surprised if we get a bounce and if we do get a bounce then the maximum it can climb up to is 6,240, however 5,930 is still a crucial support to deal with and the market is in sell mode".
"From a trading point of view I would doubt the bounce and would sell rallies," he further opined.
BONANZA: Avinash Gupta, Vice President, Research Equity, Bonanza Portfolio, while commenting on the outlook, said: "The sentiment has softened considerably. The capital flows from overseas would be influenced by the developments overseas, thus impacting our market. The market is likely to face resistance around 6,250 in the event of rally".
Talking about Friday`s market performance, he said,``The market opened weak and tried to gain. The recovery proved short-lived and sustained selling pressure pushed the indices down as the session progressed. A number of overseas developments proved too much for the market. These were the concerns of defaults by some of the European countries. A sharp fall in the Chinese stocks following rising inflation added to negative sentiment. Poor IIP data increased the anxiety of investors. Many commodities also had to contend with drop in prices in the international markets. The number of declines was far more than that of advances. There was a wide spread selling leading to a fall in almost all the sectors".
Talking about Friday`s market performance, he said,``The market opened weak and tried to gain. The recovery proved short-lived and sustained selling pressure pushed the indices down as the session progressed. A number of overseas developments proved too much for the market. These were the concerns of defaults by some of the European countries. A sharp fall in the Chinese stocks following rising inflation added to negative sentiment. Poor IIP data increased the anxiety of investors. Many commodities also had to contend with drop in prices in the international markets. The number of declines was far more than that of advances. There was a wide spread selling leading to a fall in almost all the sectors".
BNP PARIBAS : Alex Mathews Research Head, Geojit BNP Paribas, while opining on the outlook, said: "The Nifty has immediate support at 6,020 and 5,937. The major resistance would be at 6,210 and 6,244".
Talking about Friday`s market outlook, he said, "Nifty opened with a down side gap due to global economic concerns and triggers in the domestic market. Asian and European markets were down on inflation worries in China which may increase interest rate to fight against inflation. The dollar gained against basket of currencies including Euro because of weak economic cues from Greece and Ireland. Also disappointing forecast form Technology major Cisco Systems contributed to the selloff in Europe".
"The recent trends of markets indicate that we may see further lows before entering into consolidation phase. The market breadth has turned to negative after industrial output rising lower than forecast, disappointed the participants caused intensified selling pressure. Nifty spot closed at 6,071 lower by around 1.98%, send shock waves across all sectors" he added.
"The IIP data was 4.6% compared to 5.6% on a month to month basis. The Weak data was partly because of higher interest rate regime, tight liquidity situation and lower demand of products and services due to heavy showers during the period of estimate. The metal index took a toll today because of strong dollar index, it closed lower by around 3.48%, Consumer durable index lost nearly 3.46% and Banking Index lost around 2.87%" he said.
NOTE: From the above views from different broking houses, it is sure that Nifty has a major support at 5930-5937 and a resistance around 6240-6250. TRADE ACCORDINGLY. ALWAYS PUT YOUR STOPLOSS WHILE TRADING.
