The stock market continued its steady ascent higher, closing up 172.25 points (0.46%) and a weekly gain of 0.35%

After loosing momentum on Monday and Tuesday, the markets rebounded showing a Hammer formation and continued to trend higher for the entire week, revealing very little weakness.

By Thursday, 3 of the indexes actually cleared some key Negative levels back to positive  while NSE Oil & Gas,FBT & Insurance remained in Red and may be signifying a big shift in the markets underlying sentiment.

In fact, by the end of the week, None of the Indexes had hit their last highs. While the strength in the markets has to be respected, traders should also realize that the sharp rally that began a few weeks ago has really only retraced about half of the decline.

The market will need to take a breather soon if it intends to make a serious push to its last highs as a great deal of stocks looks healthy and many are starting to present possible buying opportunities. Traders should continue to exercise caution, as the markets remain vulnerable to some profit taking.

The areas to watch next week will be from the index are:

• NSE ASI 21,072, a short fall of 113.34 points
• NSE 30 946.48, a shortfall of 10.37 points
• NSE BANKING 275.87, a shortfall of 4.88 points

WEEKLY GAINERS & LOSERS

TA SIGNALS FOR JANUARY 27 2012

While resistant levels to check are in your TA SIGNALS

Have a Nice Weekend

Advertisement