Nifty Weekly Technical Analysis for Feb Expiry Week 2012

The Glorious Bull run continues in Indian markets with Nifty completing 1000 points in matter of 40 trading sessions. So what all we lost last year have been recovered in 44 days only in 2012.  Central Bank (ECB,FEd and BOJ) who have flushed the market with liquidity subsequently Bull  rally has gripped the stock market and driven the averages up in an almost straight line since mid January.
So will the Stock Market keep going up defying the law of gravity, Let try to analyze it using both fundamental and technical view.
Macro View:
The fundamentals remain a matter of concern.

• Q3 results have shown continued downward pressure on margins of India Inc.
• The fiscal deficit will end up much higher duw to rising crude oil prices and Food for Security act by GOI
• Interest rates remain high.
• Inflation has been low due to high base effect and will rise again from next 2 month onwards when we face the ground reality.
• A Greek sovereign default hasn’t been ruled out.
•  War with Iran can let the Crude Oil spiking higher. Yesterday Iran has stopped giving oil to EU countries and Oil is trading at 6 months high.

Technical Perceptive

Nifty Hourly Chart

On Hourly charts Nifty  gave a breakout after....

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