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.
Monday, October 10, 2011
Wednesday, September 8, 2010
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.
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.
Saturday, July 31, 2010
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.
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.
Monday, June 21, 2010
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.
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.
Saturday, April 10, 2010
Markets in the new Resistance Zone
The markets, as expected, crossed the 18,000-mark during the week, all due to a solid start. Despite Thursday’s weakness, the markets were able to extend gains for the ninth straight week.
The Sensex touched a high of 18,048 in the middle of the week. Thereafter, it corrected and ended with a gain of 241 points at 17,933. In the process, the index gained 12.7 per cent (2,017 points) at 17,933.
Going by the current trend, it seems the markets are likely to start the week on a positive note, however, the second half of the week could see selling pressure. The nine-week rally may end this week, if the index is unable to sustain above 18,050.
The momentum indicators on the weekly charts are indicating tiredness, and we may see net losses, albeit marginal, next week. The index is likely to face considerable resistance around 18,075, above which it may spurt up to 18,150. On the downside, the index is likely to find support around 17,790-17,700. A break of 17,700 could trigger significant selling during the week.
The NSE Nifty moved in a range of 109 points, it touched a high of 5,400 and a low of 5,290. The Nifty finally settled with a gain of 71 points at 5,362.
The Nifty is likely to face considerable resistance around 5,432, which is the higher end of the Bollinger band on the weekly charts. The daily chart indicates resistance around 5,407. Bulls should continue to have the upper hand, as long as the index sustains above 5,400. On the negative front, selling pressure may intensify when the index slips below 5,320.
The Sensex touched a high of 18,048 in the middle of the week. Thereafter, it corrected and ended with a gain of 241 points at 17,933. In the process, the index gained 12.7 per cent (2,017 points) at 17,933.
Going by the current trend, it seems the markets are likely to start the week on a positive note, however, the second half of the week could see selling pressure. The nine-week rally may end this week, if the index is unable to sustain above 18,050.
The momentum indicators on the weekly charts are indicating tiredness, and we may see net losses, albeit marginal, next week. The index is likely to face considerable resistance around 18,075, above which it may spurt up to 18,150. On the downside, the index is likely to find support around 17,790-17,700. A break of 17,700 could trigger significant selling during the week.
The NSE Nifty moved in a range of 109 points, it touched a high of 5,400 and a low of 5,290. The Nifty finally settled with a gain of 71 points at 5,362.
The Nifty is likely to face considerable resistance around 5,432, which is the higher end of the Bollinger band on the weekly charts. The daily chart indicates resistance around 5,407. Bulls should continue to have the upper hand, as long as the index sustains above 5,400. On the negative front, selling pressure may intensify when the index slips below 5,320.
Friday, April 2, 2010
Weekly gains in Nifty continues
On April 01, 2010 Nifty closed in green today, preventing a negative weekly
close—thereby keeping hopes alive for the bulls and testing
the patience of bears. The daily momentum continues to be
in a sell mode, whereas the hourly momentum has come into a
buy mode but trading below the zero reference line, thus
falling short of confirming that the trend has again reversed
on the upside. The market breadth has improved over the last
couple of days but the volumes continue to be low even after
the breakout from the high of the bearish engulfing candlestick
pattern formed on the monthly charts on the Sensex—this is
not a good sign. Nifty formed a hammer candlestick pattern in
Q3 and Doji star candlestick pattern in Q4 almost gaining
nothing in the six months. Nifty has formed a 5 wave declining
pattern on hourly charts in the fall since Tuesday and has
retraced almost 61.8% of its fall from 5330 to 5235. Going ahead,
the high of 5330 remains a crucial resistance and 5266 a crucial
support for if the index breaches 5266, it will slide sharply. So,
keep an eye on these two levels i.e. 5330 and 5266—the next
trend deciders. We continue to maintain our short-term bias
down with the reversal above 5330.
Nifty on hourly chart is trading above its 20 hourly moving
average (HMA) and 40HMA pegged at 5277 and 5276
respectively, which are now its short-term supports. The
hourly momentum indicator KST has turned into buy mode
and now trading below the zero reference line.
Nifty on daily chart is trading above its 20 daily moving average
(DMA) and 40 daily exponential moving average (DEMA) placed
at 5196 and 5028 respectively, which are now its short-term
supports. The momentum indicator (KST) has given a negative
crossover and trading above the zero line. The market breadth
was positive with 1,099 advances and 253 declines on the NSE
and 2,212 advances and 608 declines on the BSE.
The Nifty and Sensex were up by 41 points and 165 points
respectively.
close—thereby keeping hopes alive for the bulls and testing
the patience of bears. The daily momentum continues to be
in a sell mode, whereas the hourly momentum has come into a
buy mode but trading below the zero reference line, thus
falling short of confirming that the trend has again reversed
on the upside. The market breadth has improved over the last
couple of days but the volumes continue to be low even after
the breakout from the high of the bearish engulfing candlestick
pattern formed on the monthly charts on the Sensex—this is
not a good sign. Nifty formed a hammer candlestick pattern in
Q3 and Doji star candlestick pattern in Q4 almost gaining
nothing in the six months. Nifty has formed a 5 wave declining
pattern on hourly charts in the fall since Tuesday and has
retraced almost 61.8% of its fall from 5330 to 5235. Going ahead,
the high of 5330 remains a crucial resistance and 5266 a crucial
support for if the index breaches 5266, it will slide sharply. So,
keep an eye on these two levels i.e. 5330 and 5266—the next
trend deciders. We continue to maintain our short-term bias
down with the reversal above 5330.
Nifty on hourly chart is trading above its 20 hourly moving
average (HMA) and 40HMA pegged at 5277 and 5276
respectively, which are now its short-term supports. The
hourly momentum indicator KST has turned into buy mode
and now trading below the zero reference line.
Nifty on daily chart is trading above its 20 daily moving average
(DMA) and 40 daily exponential moving average (DEMA) placed
at 5196 and 5028 respectively, which are now its short-term
supports. The momentum indicator (KST) has given a negative
crossover and trading above the zero line. The market breadth
was positive with 1,099 advances and 253 declines on the NSE
and 2,212 advances and 608 declines on the BSE.
The Nifty and Sensex were up by 41 points and 165 points
respectively.
Saturday, March 27, 2010
Nifty Close to bearish engulfing
After giving a breakout from the triangular pattern, Nifty on Mar 26, 2010 continues to trade on upside surpassing the resistance of 5270 and just shy of 5310—the previous swing high made in January when it had formed a monthly bearish engulfing pattern. The index is trading in an upward parallel channel and above 5310. The next target is 5470—the upper end of the parallel
channel. On the lower side, 5260 and 5210 are good short-term supports. The daily KST continues to be in a sell mode, but the hourly KST has come into buy mode making the bulls comfortable. Nifty has given its seventh consecutive positive weekly close in a row, which depicts the strength of bulls. With this, we continue to maintain our short- and medium-term bias up.
Nifty on the hourly chart is trading above its 20 hourly moving average (HMA) and 40HMA placed at 5240 and 5234 respectively, which are now its short-term supports. The hourly momentum indicator KST has turned into buy mode and is now trading near the zero reference line.
Nifty on the daily chart is trading above its 20 daily moving average (DMA) and 40 daily exponential moving average (DEMA) pegged at 5136 and 5082 respectively, which are now its short-term supports. The momentum indicator (KST) has given a negative crossover and is trading above the zero line. The market breadth was negative with 572 advances and 772 declines on the NSE and 1,200 advances and 1,651 declines on the BSE.
The Nifty and the Sensex added 22 and 86 points to its kitty respectively.
channel. On the lower side, 5260 and 5210 are good short-term supports. The daily KST continues to be in a sell mode, but the hourly KST has come into buy mode making the bulls comfortable. Nifty has given its seventh consecutive positive weekly close in a row, which depicts the strength of bulls. With this, we continue to maintain our short- and medium-term bias up.
Nifty on the hourly chart is trading above its 20 hourly moving average (HMA) and 40HMA placed at 5240 and 5234 respectively, which are now its short-term supports. The hourly momentum indicator KST has turned into buy mode and is now trading near the zero reference line.
Nifty on the daily chart is trading above its 20 daily moving average (DMA) and 40 daily exponential moving average (DEMA) pegged at 5136 and 5082 respectively, which are now its short-term supports. The momentum indicator (KST) has given a negative crossover and is trading above the zero line. The market breadth was negative with 572 advances and 772 declines on the NSE and 1,200 advances and 1,651 declines on the BSE.
The Nifty and the Sensex added 22 and 86 points to its kitty respectively.
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