Break out with volumes

The Nifty has closed in the positive today and is now
expected to head higher till 5300 with support around 5232
in the short term. A key support in the immediate run would
be around 5232 and resistance will be faced at 5300.
Of the 30 stocks of the Sensex, Jindal Steel and BHEL are
expected to move up further going forward.
The Nifty has broken out of a triangular pattern with a
break-away gap and has also closed above the 20-week
moving average (WMA) ie 5194, which is a positive sign for
the market. The Nifty is now expected to retrace 61.8% or
78.6% ie 5300 and 5450 respectively of the previous fall
from 5630 to 4770.
Other technical observations:
On the daily chart the Nifty is trading above its 20-day
moving average (DMA) and 40-DMA ie 5085 and 5082
respectively. The momentum indicator has turned in the
positive mode on the daily chart.
On the hourly chart, the Nifty is trading above its 20-hour
moving average (HMA) and 40-HMA ie 5184 and 5171
respectively, which are crucial intraday levels. The hourly
chart momentum indicators have turned into positive mode.
The market breadth was positive with 1102 advances to
405 declines on the NSE.
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Resistance @ 5220

The Nifty has closed in the positive today and is now
expected to trade higher till the 5330 mark in the
immediate run. A key support in the immediate run is
around 5233 and resistance will be faced at 5330.
The Nifty ended in the positive with a gain of 116 points
while the Sensex added 345 points in today’s trading.
Of the 30 stocks of the Sensex, Hindalco and Mahindra
& Mahindra are expected to move up further going
forward.
The Nifty had been trading in the range of 5300 and
5130 forming a falling wedge pattern, which has now
broken out on the upside. The Nifty is now expected to
trade positive till 5385 in the short term, which is the
upper end of the falling trend line on the daily chart.
On the daily chart the Nifty has again taken support
around the 200 day moving average (DMA) ie 5150,
which will act as a very crucial support going forward.
The Nifty is now expected to move up till 5385 levels
with support around 5135. But if the Nifty sustains
itself below the 200 DMA and 5135 levels, then the
negative alternates will open up.
On the daily chart the Nifty is trading around its 20
DMA and 40 DMA ie 5292 and 5269 respectively. On the
daily chart the momentum indicator has given a
negative crossover and is trading below the zero line.
On the hourly chart, the Nifty is trading above its 20
hour moving average (HMA) and 40 HMA ie 5212 and
5233 respectively, which are its crucial levels in the
immediate run. The hourly momentum indicators have
given a positive crossover and are trading above the
zero line. The market breadth was positive with 1143
advances to 366 declines on the NSE.

Engulfing bear

The Nifty has closed in the negative today and is now
expected to trade lower till 4530. A key support in the
immediate run is around 4580 and resistance will be
faced at 4660.

The Nifty ended in the negative with a loss of 22 points
while the Sensex lost 89 points in today’s trading. Of
the 30 stocks of the Sensex, Reliance Industries and
Tata Steel are expected to move down going forward.
The Nifty has given a negative close on the yearly chart
with an engulfing bear pattern, which is a bearish sign
going forward. The Nifty has been sliding down in the
last few trading sessions, closing below the crucial level
of 4693, which is a bearish sign for the market in the
short term. On the daily chart the index had taken
resistance around its 20 day moving average (DMA)
and has now started the next leg down. The Nifty had
bounced last week in an A-B-C corrective pattern and
has started the next leg down with a target of 4480 in
the short term. Overall on the daily chart the Nifty has
completed wave A and wave B, and the next leg on the
down side as wave C has started.

On the daily chart the Nifty is trading below its 20 DMA
and 40 DMA ie 4774 and 4838 respectively. The
momentum indicator has given a negative crossover
and is trading below the zero line on the daily chart.
On the hourly chart, the Nifty is trading below its 20
hour moving average (HMA) and 40 HMA ie 4676 and
4691 respectively, which are its crucial levels in the
immediate run. The hourly momentum indicators have
given a negative crossover and are trading below the
zero line. The market breadth was negative with 715
advances to 757 declines on the NSE.

Resistance @ 20 DMA

The Nifty has closed in the negative today after a sharp
bounce yesterday; it is now expected to slip down till
4700 in the short term. A key support in the short term
would be around 4900 while resistance will be faced at
5035.

The Nifty ended in the negative with a loss of 72 points
while the Sensex dropped 244 points in today’s trading.
Of the 30 stocks of the Sensex, Kotak Mahindra Bank
and Hindalco Industries are expected to fall further
going forward.

The Nifty has taken resistance around its 20 day moving
average (DMA) ie 5006 and has closed in the negative,
which is a bearish sign for the market. The Nifty has
bounced to retrace the previous correction from 5168
to 4758 and has also taken resistance at the 61.8%
retracement level. The Nifty has retested the previous
swing low of 4720. If it sustains below the same then
the next leg down will confirm for a target of 4350.
On the daily chart the Nifty is trading below its 20 DMA
and 40 DMA ie 5014 and 5075 respectively. On the daily
chart the momentum indicator has given a negative
crossover and is trading below the zero line. On the
hourly chart, the Nifty is trading around its 20 hour
moving average (HMA) and 40 HMA ie 4961 and 4958
respectively, which are its crucial levels in the
immediate run. The hourly momentum indicators have
given a negative crossover and are trading above the
zero line. The market breadth was negative with 505
advances to 954 declines on the NSE.

Nifty index surged higher

The Nifty index surged higher on Monday.

We think this face of advancement will be substantial, as it is a third wave within a larger fifth wave.

Ultimate targets in the area of 6000 to 6300 are not unreasonable.

The trend in Indian equities is firmly higher.

Nifty get support at 5,330

The markets moved in an extremely tight range for the third straight week. The Nifty made a lower high of 5,466 and found support at 5,349. The index ended the week with a loss of 82 points at 5,367.
The Sensex moved in a range of 355 points. The index touched a high of 18,194 and then slipped to a low of 17,839. The Sensex finally settled with a loss of 263 points at 17,868.
For the last three weeks, it seems that the Nifty is facing resistance as it approaches the 5,500 mark. At the same time, the index has been able to seek support around 5,350. Next week, the index may seek support around 5,330. However, a breakout in either direction, that is, above 5,500 or below 5,330, could trigger the next move.
In August, the Nifty is likely to move in a broad range of 300 points. On the upside, the index is likely to advance towards 5465-5495-5525. On the downside, the index may decline to 5270-5240-5210.

Weekly momentum turns positive

The Nifty has achieved the conservative target of the
inverted head-and-shoulder pattern quite smoothly. Now,
on the upside there is a resistance at the previous high of
5400. Hence the Nifty needs to clear that obstacle to go
higher. On the lower side, the hourly averages are good
short-term supports. Now, above 5330 the Nifty is likely
to make a new high, ie above 5400, to achieve the
aggressive target of the inverted head-and-shoulder
pattern that is at 5500. The interesting point to note is
that the weekly KST has come into buy mode which is quite
positive for the medium-term bulls too. Hence, we maintain
our short-term bias up.