Nifty spot is getting good support near 6130-6100 zones and has witnessed a nice jump from those levels. A potential rounded top is clearly visible on daily chart of Nifty that hints the weakening momentum but weakness is not yet confirmed by price action and technical indicator MACD. As we can see in chart provided above MACD has given bearish cross below signal line but holding above zero line that favours 6100 as very crucial support. Any failure below 61000 would confirm weakness in this index and then primary target for bearish swing would be support placed in November 2013 that was around 5965. In general stability above 6100 remains supportive for Nifty bulls and sustained move above 6355 would bring more charm. Recently Index has broken out above the neck line of inverse head and shoulder pattern that suggests a target for 6700 for current swing. Overall this rally is open for a retest to 6700 zones. Any failure with closing below 6100 would neglect this bullish outlook and then we will see a short term correction that would bring 5965 and 5700 on cards. Currently trading at 6241.
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...
Comments