Skip to main content

Nifty Trend analysis

Nifty Weekly Chart: After looking at weekly chart of nifty it seems that nifty has cross its major hurdle of 5590. And 1st time nifty closed above 5590 on weekly basis after May 2011 that is confirming a positive breakout for near term. And this breakout suggesting us next resistance   around 5920. After analyzing weekly chart of nifty I noticed a nice double bottom at 5300 during this correction and nifty is still respecting that level and nifty was not able to close below 5290 on weekly basis, during this correction. That is also suggesting momentum is going to shift now. And I found an ‘w’ formation on weekly chart that is suggesting only 2 major res. For this formation that are 5920-6205 respectively. On weekly basis we can use 5440 as a strong support for this bullish view.
A failure below 5440 can confirm some consolidation between range of 5200-5700 and weekly close below 5300 would confirm a decline till 4800 on cards.

Technical Recommendation: after looking at this chart setup personally I would like to go long with a small stop loss of 5440 for target prices of 5910 and 6205 in near term.



Daily chart:
After looking at daily chart of nifty a nice bull move seen during previous weeks and a triangle on the way is suggesting that this move may continue for further upside and suggesting 5600 as very important immediate support on daily closing basis a close below 5600 on daily basis would confirm a gap filling that left on 29th June that is around 5558 trader can use this opportunity to accumulate this index for a fresh bull move. And 5440 will be stop loss for all longs. A failure below 5440 with closing may confirm a short term consolidation between range of 5200-5700 but a weekly close below 5270 will kill all bulls. Other wise nifty is looking pretty attractive and personally I would like to go long at every decline till 5440 with a stop loss of 5440 for 5900-6200. 

Comments

snehal jain said…
any scrip in buying seen in 2012 with short term.

Popular posts from this blog

Will Exhaustion Gap Halt the Down Trend in Nifty?

In this video we have explained what NIFTY is likely to do in next few sessions. 

Nifty Options Weekly Expiry; MAX PAIN stands at 13400

#NIFTY #INDEX currently trading at 13438, down by 90 from previous close. Today index has opened gap down and taken out the low placed yesterday at 13449 triggering primary weakness in market for the day. Immediate support is now placed at 13390, retest to this level can’t be ruled out but stability below 13390 will result in to further weakness and then attempt towards 13350-13310 zones can’t be ruled out. Key support will be at 13300 and further stability below that level will bring more weakness. Resistance is now placed at day high which stands at 13488, any sustained move (Less likely) above that level will bring some relief to bulls and then attempt towards 13540-13590 can be seen.  On #option_chain heavy #call_writing is being done at 13500-13600 strikes where as short covering is visible in 13450 and 13500 puts whereas longs build up seen in 13400 puts with high volume. Based on current #OI position level of #option_pain stands at 13400 thus based on current data at 10:52AM...

LIC Housing Finance; time for bulls?

  LIC HOUSING FINANCE settled at 321.90 up by 5.78% on Tuesday. Stock had been staying in a consolidation phase that took shape of an ascending triangle and in today’s session it broke through the resistance line of this triangle consolidation and settled well above key resistance of 312 suggesting dominance of bulls. Stock has been staying above its 9 days SMA on daily chart keeping a short-term bullish trend in picture. Stochastic is now approaching overbought territory along with bullish cross above its signal line suggesting a strong bullish momentum. MACD has been staying in positive territory and now its parting upward from its signal line suggesting development of fresh bullish momentum. Direction and momentum are two important components for any chart to anticipate future price movement and current trend and momentum on chart provided above is suggesting bullishness. Breakout of triangle pattern can be used to determine potential destination for current move and if th...