Market Outlook 21 December 2009

Nifty (4988)

Nifty has formed “Long Black Opening Marubozu” bearish candlestick pattern on daily chart. on Friday Nifty has broken important support level of 5002 of 50 DSMA, which interprets testing of double bottom area of 4940 is quite possible if we gets two close below 5002 level. Daily RSI and MACDh are showing weakness where as Stochastic is hovering in over sold area, suggests pull back may arrive but sustainability is very low. Weekly chart has also formed “Long Black Candle” bearish candlestick pattern and Weekly RSI has also given negative divergence. Over all scenario looks weak in coming days.

Intraday Support:-4965-4940

Intraday Resistance:-5002-5015-5035