Sunday, September 6, 2009

Nifty Technical Analysis

Nifty Technical Analysis

Nifty Spot : 4680.4

Change : 44.15(0.94%)

Advances : 46

Declines : 3

No Change : 1

Nifty Trin : 1.02

5 EMA : 4636

13 EMA : 4536

34 EMA : 4436

Bull TRIN : 0.197

Nature : Bullish

SCO : 95.98

Terms you need to know -

Pivot Point - A technical indicator derived by calculating the numerical average of a particular stock's high, low and closing prices.

NIFTY TRIN - Is short form for TRaders INdex. A technical analysis indicator calculated by taking the advances-to-declines spread and dividing that by the volume of advances to declines.

TRIN is for NIFTY 50 Stocks ONLY and not for ALL stocks.

RSI - A trader using RSI should be aware that large surges and drops in the price of an asset will affect the RSI by creating false buy or sell signals. The RSI is best used as a valuable complement to other stock-picking tools.

EMA - The Exponential Moving Average is calculated with the following formula (courtesy of stockcharts):

EMA(current) = ( (Price(current) - EMA(prev) ) x Multiplier) + EMA(prev)

Depending on the period you are using, the EMA will apply a percentage for how much the recent price action is weighted:

For example, a 10-period EMA's Multiplier is calculated like this: (2 / (Time periods + 1) ) = (2 / (10 + 1) ) = 0.1818 (18.18%)

Reliance Industries Ltd.

As expected on Thursday/Friday stock was unable to break 1922-1909 level. After hitting low of 1930 on Thursday taken U-turn to close at 1992 on Friday.

Now, What to expect from this level ?

Day Traders: Just have a eye on 2006-2016 levels. Once crosses 2016 level with volumes then nonstop rally will start and huge short covering not ruled out.

Stock will jump upto 2044-2053 level in hrs only.

Support for Stock: 1981, Break will create panic upto 1967-1962 level.

Always remember: Above all be mentally prepared for the rigors of each trading day from the time you get up each morning until you go to bed at night.


Post a Comment

Please leave your comments here...