LET THE MARKET TELL WHO WE ARE

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

  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...

Sometimes, in unfavorable circumstances it becomes bit difficult to take a directional view on entire market or on a particular asset. But in financial markets we have seamless opportunities even at the times when your systems are not able to take a directional view on an asset or when fundamental and technical are not streamlined. Ratio trading is one of those opportunities. In past we suggested a ratio trade in gold and silver while gold silver ratio was at 120 and today this ratio stands at 76. Means people who traded this opportunity could bought 120 kg of silver by selling 1kg gold and now they can buy 1kg of gold just by selling 77 kg silver means this opportunity has earned you 43kg silver. Today again I am back with my analysis on BANK NIFTY and NIFTY ratio. Current Bank nifty- Nifty ratio stands at 1.94. Areas of 1.90 has served as good support for this ratio since 2012. However, this ratio has hit 1.62 during 2013 but was not able to spend much time in that territory and ...

NIFTY spot has closed at 10831.40, and facing stiff resistance near 10931 zones which is the high placed on Monday keeping this index under pressure. Nifty has been witnessing a nice uptrend on weekly chart from low 6825.80 which was placed during March 2016. A classic bearish head and shoulder pattern is emerging on weekly chart and this pattern gets its confirmation on break of the neckline which is near 10000 zones. If this pattern gets confirmed then it will open the doors for a retest to flip support which stands near 8900 zones. Price is struggling to hold above 50 weeks SMA which equals to 200 SMA on daily chart. Price resistance near 200 days SMA plays a significant role. 10 weeks SMA has already given a bearish cross below 50 weeks SMA and this SMA on weekly chart equals to 50 days SMA on daily chart. These developments on SMAs suggests that a death cross has already happened in this index. Price has also violated a rising trend line and recently it has experienced res...

Happy independence day!!! We are celebrating 71st independence day but what about financial freedom? Large number of people in this country give up their desire just because they can't afford. People who have batter financial management become wealthy in other words people who know how to make their money to work for them become rich and achieve financial freedom. No matter how hard you work, how much you earn if you can't manage your finance properly you would never achieve financial freedom. To prove my point let's take an example of two people. In early 2000 two persons, person 'A' and person 'B' employed in small shops in small town earning 3000 per month as salary. Person 'A' bought a colour TV which was costing nearly 25000 at that time and person 'B' bought a plot of 100 yards with that 25000 rupees. After 10 years that TV's value depreciated to 2500 from 25000 and that plot turned into an asset of 25lks... This is how properl...

Nifty spot is currently trading at 8565.55. This index has recently placed a top at 8968.70 which was 93.4% correction of entire bearish attempt from high 9119.20 to low 6825.80. Nifty has turned sideways near 88% Fibonacci correction of bearish move that presents ideal condition for a Bullish Bat harmonic pattern. Nifty price movement has already completed 3 legs of this pattern and now final leg ‘CD’ is in progress that completes near 88% correction of primary leg ‘XA’ which is placed at 5574. Based on price action Nifty, however, had recovered from 57% correction of bullish attempt from low of 5118.85 to high 9119.20 but failed to make a higher top to confirm continuation in longer term bullish trend and now it keeps chances alive for negatively biased sideways market. Nifty has been fluctuating between 8500-8900 zones from past few weeks and attracting buyers near the areas of 8500-8470 zones. Thus we can consider areas of 8470 as very strong support but a bearish cross on MAC...

CAIRN on NSE settled at 162.10 and registered 7.96% gains for the day. Provided is weekly chart of CAIRN in which a strong down trend can be seen clearly. Recently, stock has changed its dynamics on weekly chart and a long term bottoming formation can be seen clearly on MACD indicator. Inverse head and shoulder pattern has emerged in this stock and this week stock has broken out above the Neckline of this bullish reversal pattern.  MACD is now testing its signal line near centre line and MACD histogram is confirming MACD divergence that suggests increasing bullish momentum. Stock has formed a base above 20 weeks EMA which is itself a bullish trigger on short term time frame. However, 20 weeks EMA is staying below 50 weeks EMA but price has climbed above 50 weeks EMA that suggests increasing bullish momentum in this stock.  Inverse head and shoulder bullish reversal has emerged after 16 months of strong down trend that increases the potential of this pattern. However, patte...

Here are 5 reasons why NIFTY has potential to resume its primary (long term) bullish trend. Price has broken out above 1 year old descending trend line resistance which was drawn by connecting life time high of 9119.20 ( March, 2015) and another swing high 8654.75 (July, 2015). Broken trend line has provided strong support during most recent bearish attempts. Price has been staying above 20, 50 days EMAs and 20 days EMA is above 50 days EMA and both EMAs are trending up. Nifty has found strong support near 23.8% Fibonacci correction of bullish attempt from low of 6825.80 to high 7992. Smaller the retracement stronger the trend.  Price has started attacking on 200 days moving average while MACD is in positive territory.  A Confirmed breakout above 8000 will lead a strong rally in this index, whereas failure of 7650 will invalidate recent bullish developments. 

Domestic markets have responded positively to union budget 2016 and today NIFTY witnessed a rally of 235 which is largest intraday gain in last 1 year. A double bottom pattern has emerged on price chart and technical indicators are showing bullish divergence at the same time which is supportive for bulls. However, MACD indicator has been staying in bearish territory but a cross above its signal line hints weakening bearish momentum and divergence on this indicator hints strengthening bulls. 14 periods daily RSI has also formed a bullish divergence which is also supportive for bulls. On price action front NIFTY is now approaching towards descending trend line resistance and horizontal line which has flipped to resistance near 7260 zones. In case of stability above 7260 it will confirm a double bottom and descending trend line break and then a primary rally towards 7520-7600 zones can’t be ruled out. Support will remain at 7030 failure of this level seems less likely in case of fai...

Nifty has been experiencing a correction after hitting a top of 9119.20 during the month of March last year. This correction has occurred in a channelized manner and today nifty has witnessed nice recovery from 7241.50 after testing support line of this bearish channel. However, there is no evidence of bottom on chart and bulls need to establish a move above 7500 to claim their presence.  Index is staying below 5 days exponential moving average from last few days that suggests accelerated down trend. MACD indicator has been staying below center line and still it’s loaded with bearish momentum that remains a supporting factor for NIFTY bears. However, 14 periods daily RSI is testing oversold territory but it is also staying below its 9 periods moving average that keeps on going down trend intact. 2 Fibonacci projections are converging near 7220-7187 zones. These are the areas where NIFTY might get support. If nifty manages to spend considerable time below 7180 zones then down tr...

Nifty is currently trading at 8083. It had witnessed a sharp recovery in yesterday’s session after revisiting neckline of an inverse head and shoulder pattern. This chart is showing NIFTY’s love towards classic head and shoulder formation. Nifty is likely to stay in a range among 8000 and 8350. Areas of 8000 are supported by the neckline of an inverse HNS formation and 8350 are resisted by neckline of HNS bearish reversal pattern. Any confirmed breakout above or below these levels will clear the way for a bigger move. Nifty index has been experiencing down trend since March 2015 which has taken place in a channelized manner and currently we are trading in corrective leg of this bearish trend. Stability above 8000-7950 keeps nifty in short term trading range among 8000-8350. Any sustained move above 8360 will confirm resumption to longer term uptrend and then primary rally towards 8600 can’t be ruled out. Any failure of 7950 will invalidate current bullish move and then it will try to...

TECHM on NSE has been consolidating within an ascending triangle and stock is now witnessing some recovery from ascending trend line support of this pattern. Stock has witnessed multiple bottoms near 530 zones which is also supported by rising trend line and currently stock price has climbed above 20 days EMA which is also a supportive factor for short term bulls. Immediate support is now placed near 530; stability above this level keeps chances alive for a retest to resistance line of this triangle that stands near 578. Failure of 530 will invalidate this bullish setup and stock may witness retest to 510-480 zones. Based on the above setup, one can go long in this stock among 554-546 with stop loss of 530 for targeting 576 and more upside in coming days. Currently trading at 554.40.

Nifty spot is currently trading at 8259, and this is the last session for the week ending on August 21, 2015. Today nifty has broken through the key support of 8355 established by a strong trend bar during the week ended on July 17, 2015. Possibility of a head and shoulder top reversal pattern is also visible and nifty has reversed from the height of the left shoulder and triggering possibilities of a head and shoulder reversal that will get confirmation if nifty manage to hold below its neckline around 7950 in coming days. As per current scenario market bias has turned bearish as prices have fallen below 20 weeks SMA and likely to settle below the same. Now areas of 8190 are a minor support if bulls manage to protect this level then we will see a consolidation among 8200-8500 in short term. Failure of 8190 will put focus back on the neckline support of this reversal pattern at 7960 and any weekly close below this level will offer a retest to 7200-6800 zones. A healthy correction is a...

A perfect Wolfe Wave pattern is clearly visible on daily chart of NIFTY Spot. Index has failed to produce stability above prior high 7808 which is also 5 th point of this bearish setup. A bearish divergence is also clearly visible on MACD and supportive for bears. As per this setup, stability below 7800 zones remains bearish for this stock index and it may try to test 7440 as primary support. Further stability below 7400 would extend this corrective move and retest to 7250-7200 can’t be ruled out. Areas of 7721 and then 7800 will remain crucial to watch and sharp recoveries above these levels may deactivate recent bearish triggers. Recommendation: as per current setup selling NIFTY on jumps around 7650-7700 with stop loss above 7810 for targeting 7440-7300 might be appropriate in next 9-27 days.

VADILALIND (NSE) has been trading in a nice descending channel and now an inverse head and shoulder pattern is clearly visible on daily chart. Stock is holding above its 20 and 50 days SMA and 20 days SMA has given a bullish cross above 50 week SMA confirming a short term shift in trend. MACD has climbed above zero line and now getting ready for a bullish cross above signal line that would attract fresh buyers in this stock. Stock has formed a breakout above neckline of inverse head and shoulder pattern. Now rally towards 200 days SMA (160) looks imminent and further stability above the same would extend current bullish move for a retest to down sloping trend line resistance of a bearish parallel channel. Recommendation: As per charts and explanations one can go long in this stock around 148-140 zones with a stop below 130 for targeting 160-180 in near term.