Nifty Weekly Technical Analysis for Week Begining 21 May

Nifty continued with its down move  and made a low of 4788 but outperformed rest of world markets as we are down only 0.8% WoW basis. Last week as we discussed below 4995 trend remain bearish and Nifty made a high of 4957 and reached to 4788.Click Here to Read the Previous Week Analysis

Indian markets are facing the double whammy of rising Indian Rupee as it touched almost 55 odd levels,Life time low with  rising Inflation as April Inflation came at 7.23%Greece the small economy has kept the world markets on its toes on whether it will remain in and out of Eurozone. Greece leaving Eurozone will be Lehman Moment of 2012 and cost run in almost trillion dollars.Greece has declared election on 17 June which gives lot of time to ECB and World Leaders to prepare a contingency plan for Greece Exit.

Facebook Listed on NASDAQ on Friday and closed almost at its 38.23 near to its offer price.Facebook net worth is now 104 Billion Dollars.
In simple valuation terms, Facebook's stock is trading at 105 times its 2011 earnings. This means that in 2011, the company's profits stood at US$ 1 bn. For any company to justify such valuations, its earnings growth needs to be phenomenally high. How Facebook will capitalise on its 900 m plus user base (and one that is still growing), will definitely be interesting.
Lets jump into Technical.

Nifty Hourly Chart

Nifty hourly charts are giving sign of reversals as it is breaking the downward slopping trendline from running from 5300. Close....

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