Market Outlook for the Week: 26-07-10 TO 30-07-10

NIFTY WEEKLY SUPPORT exists around levels of 5400 - 5340 - 5270 levels, with HURDLE at 5500 - 5570 - 5650 range.

The Nifty too went on to yet another 29-month high last week and closed above the 5,400 mark. The short as well as the medium term trends in this index are currently up. The index could move higher to 5,511 or 5,545 should the rally extend next week. But it needs to be borne in mind that the Nifty faces stiff resistance in the band between 5,400 and 5,450. Traders should stay on their guard until the index is safely past 5,450.

Supports for the week ahead would be available at 5,353 and 5,323. Traders should divest their longs on a close below the second support.

The medium term trend in the index continues to be up but e-wave targets of the move from 4,786 throws up the next target at 5,511. Minor counts of this move throw up the targets of 5,448 (where the index is currently positioned) and then at 5,545. In other words, the index faces strong resistance in the zone between 5,450 and 5,550. If this zone is surpassed, move to 5,780 would be possible over the medium term.

(DISCLAIMER :- Rachinsureinvest does not warrant accuracy, completeness and correctness of this message and material .The Message and material contained in this should not be construed as an offer to sell or solicitation to buy any securities or to participate in any particular trading strategy, any opinions expressed in this message and material may be subject to change without notice. We are not soliciting or recommending any action based on this material.)