Not much has changed in last week, market is still at support level near 5200 area. Will it bounce from here!!! Considering Euro-zone issues are NOT resolved yet while we have a new issue on the horizon called "US Fiscal Cliff" (not going in detail about this one), not to forget Chinese economic growth is also slowing down along with India's economic growth. All these issues are NOT market friendly and might drag the markets down further. We might see a zig zag action and wild swings which shall increase possibility of QE3 announcement in US with more bandage in Euro-zone. This might provide some relief rally for next few months....
From below chart, it can be seen that Market is still above its MA(100) while McClellan Index is also above its EMA(59) suggesting further upside for now.
It is clear from below Nifty chart, market is testing support. If support breaks then market can go down further to 5100 level followed by 4900 level. However, if market bounces back from here then 1st target will be 5350. Due to unresolved global financial issues, market may end up having wild swings and lot of zig zag motion.
In short, expect lot of volatility in near term. ONLY invest in stocks with good patterns and always have STOP LIMIT. For now market remains in uptrend but be cautious.
Just like all of you, hard working and trying to make a better living.