Nifty ended the penultimate week for calendar year 2010 in positve territory with a gain of 31.60 points at 6,011.60 on Friday, the 24th December 2010. In a day of relatively thin trading across the neighboring markets in Asia, it was heartening to note that the broader Nifty index surpassed the pyschological 6,000-mark
From the technical perspective, the Nifty had thrown out some interesting indicators that augur well for optimism and higher opening on Monday, the first trading day of the last trading week for calendar year 2010.
The above chart gives a broad picture of the key levels - following Ichimoku Analysis.
Tankan Sen, the short-term average, stands at 5,909.85, while the broader Kinjun Sen stands at 5,883.28, at the end of the trading session on 24th December 2010. At the end of trading on December 23, 2010, the levels of Tankan Sen and Kinjun Sen were 5,872.48 and 5,917.20 respectively.
On Friday, the short-term Tankan Sen has decisively crossed over the longer-term Kinjun sen from below - a definite sign of bulllishness in the market. This bullish sign is signalling a positive opening on Monday.
Yet another bullish sign for positive opening on Monday is the Chikou Span. A close above 5,998.60 - being the chikou span, also augurs well for the market sentiment.
However, a word of caution. The present level of prices falls within the Kumo cloud - a technical region of NO TRADE. The outlook for the day will be cautious optimism with a limited range bound trading. The upside is capped at 6146 while the lower level will be 5906. With F&O series closure due on Thursday, volatiliy might be in play on the last week of trading for 2010.
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