Monday, October 22, 2012

Nifty Outlook for 22nd Oct 2012



Nifty Outlook for 22nd Oct 2012


For two weeks now,Nifty's range trading(5634-5734) has lowered VIX to 14.54,the Lowest level of 2012.Usually such a low VIX level shows bulls complacency to take Nifty higher up and is a reliable signal of market tops,however liquidity factor is keeping Indian markets above 5634 level.Next trigger will be in form of RBI action ( on 30th Oct) & Outcome of US elections.The key levels remain unchanged;5634 remains as key support level,followed by 5587.Nifty has to negotiate the distribution zone of 5744-5825 for second leg of rally.Day + weekly close above 5744 will signal second breakout in Nifty & probable rally towards 5900-5950.Conversely breach of 5634 and 5587 will terminate the current trade set up of Buy on dips strategy.

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