Nifty Weekly Technical Analysis for Week Begining 14 May

As discussed in last week analysis Nifty Technical Structure look weak and Nifty corrected and closed below 200 DMA on a Weekly Closing basis. GAAR has been delayed by 1 Year and we got a news based rally which got sold into showing the supremacy of Technical Analysis.Last Week we shorted below trend deciding level of 5070 and Nifty stopped its downmove on our last support level at 4905.Click Here to Read the Previous Week Analysis
Election results in France and Greece have once again triggered Euro debt worries as voters have overwhelmingly rejected austerity measures in favor of anti-austerity leaders.Greece is heading for another elections and if anti austerity party gains full majority Greece will mostly be out of Eurozone.
Will it be Lehman Moment ?
Some Good news for Bulls
Peoples Bank of China cuts Reserve Ratio Requirement by 50 bps to 20% effective from 18th May 2012.A 50 basis-point cut in the reserve requirement in February probably added 400 billion yuan ($63.4 billion) to the financial system

Nifty Hourly Chart

Hourly Charts are trading below both 20 and 50 HSMA and Bears inability to fill the gap from 4905-4880 shows bulls are buying at lower levels. Any move above 4995 can trigger a relief rally...

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