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Monday, December 20, 2010

Market outlook for the week 20-24December

Since Wikileaks is getting so much attention by mainstream news media, it is our opinion that it is now (or always has been?) part of the planned coming debasement of the market next year. He will be the pasty or scapegoat for next years’ major downturn Since we don’t know whether or not Assange is a “good guy” being used, or a “bad guy” playing a role, we are going to go with our heart and simply say that what he’s doing right now makes him a hero in current scenario. So, part of the plan or just being used, it really doesn’t matter. We live in the society, where good guys do bad things sometimes, and bad guys do good things.


Last week we told all you all that support zone around 5840 & resistance zone around 5978.... And whole world watched both levels working as a boundary line for up & down movement...nifty fut making 5865 on lower side & making a high of 5979 on upside, trading exactly in the range as mentioned by us!! Whole week the market have shown roller coaster rides & confusing the retail trader to take the right decision. You all have to admit that everything this year has been the opposite of what all the retail traders expected. In coming days also, the manipulators will try to maintain this kind of movement in markets. So you can expect some wild swings to shake out the bulls and squeeze the bears to happen before the final sharp movement takes place. Remember, the gangsters don’t want to have to pay out any money to the option holders..... both calls and puts. Manipulators have the ability to keep markets up for as long as they want to. It seems they have an unlimited supply of Viagra, and nothing is going to stop them from continuing to push it up higher. They are in the driver’s seat right now, and it’s going to crash only when they are ready.

Now moving forward for coming days, the bears need to gap this thing down below support 5930, or the bulls are going to stage another massive murder of them. If bulls are able to hold the markets above 6035 level, then surely bulls are having an upper hand. But moving onto the higher side bulls have barrier at 5994 level, if they are able to cross this barrier then they will inch higher upto 6035-6072-6124. Moving on to higher side 5994-6035 will be resistance zone for bulls, and an extra adrenaline rush to cross it. Contrary to this bull side, if bears are able to restrict the bulls from marching higher & pull the markets down below 5930 level, then we can see selling coming in markets & Nifty fut showing levels of 5880-5840-5790. However the bears will be having a tough fight with bulls in lower range 5840-5880. Bears have to work hard to break the support 5880 on closing basis, in order to save themselves from getting butchered by the bulls once again. Overall immediate range for the markets for this week looks like 5880-6035, & a broader range of 5840-6124. All upside above 5978 in markets is the “offloading zone” we believe. A range bound market is likely to continue until this year is over. It’s up to us to figure it out of course, but never forget to expect the unexpected..... Read the facts provided for knowledge & use your own wisdom to trade in this market.

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COMMODITY ALERT

  • Silver having good support at 43570-42320, so use all declines to buy it. On upside it has resistance at 45210, once this level is crossed & sustained then we can see it moving to 46000 levels.
  • Copper having support at 414 & resistance at 421. Use every dip to buy, above 421 it will fly high for targets 428-436+. Major support for long term positional traders is 394.
  • Gold traders keep eyes on support range 20370 till the lower level is not breached decisively, we can see higher levels of 20720-20832-21000+ . For gold, positional traders can keep watch on 20290 level as a good support.

As said by us in last few days, we are bullish on Silver & Copper in medium term time frame. Both these commodities can show unexpected price levels in coming year. All traders must note one thing...that our view is for medium term so day traders or very short term traders don't take any positions based on this view.!!!!

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Nifty Future Levels

  • Resistance - 5994-6035-6072-6124
  • Support - 5930-5880-5840-5770

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Stocks for the week

  • Raj Packaging
  • Eros International
  • Camlin Ltd.
  • Victoria Mills
  • Karuturi Global
  • Hindustan Oil Exploration
  • Educomp
  • TCS
  • ONGC

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