Nifty weekly update for 12-16 November 2012

Nifty failed to surpass the high of the tight range and once 5700 is taken out it might be getting ready for a 100 points fall. Nifty is getting decent support at 20 DMA but large cap stocks have started declining from the support zones.Stocks like SBI and ADAG stocks are on the verge of a decline and we need to watch the previous low zone of nifty as it was acting as the support zone till now.Nifty could get some buying interest at lower levels and that was evident from the increase in premium after hitting the low. As of now no distribution pattern is seen in nifty futures and traders are accumulating long positions despite the weakness in the global markets. If nifty is holding the low and moves REC would be one among the few bets on the long side as it is consolidating close to important moving averages and likely to move to 235 in the short term. The volume is still low and would be lower in the coming days too because of the Deepawali and it could arrest any major moves this week and stocks would perform in its own way. SBI is still a stock to worry and a level below previous days low could take the stock again back to 2050 in Novemeber series and 2150 would be an important support zone for the stock as it is close to the 50 day EMA. Cyclically 5-10 of November are important dates and it is the cyclical anniversary of the high of 6335 made in 2010 and the dates could normally act as pressure dates for the Indian equity market as these are considered to be trend deciding days.