Sunday, September 13, 2009

Nifty Technical Analysis

Nifty Spot : 4829.55
Change : 10.15(0.21%)
Advances : 21
Declines : 28
Nifty Trin : 1.771
5 EMA : 4636
13 EMA : 4536
34 EMA : 4436
Bull TRIN : 0.197
Nature : Heavily Overbought
RSI2 : 97.66

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.

Reliance is the stock which is going to give a new direction to the Indian stock market. Volumes indicate that the stock is in uptrend. However Reliance has to close above the level of Rs 2,201 to target the levels of Rs 2,200-Rs 2,305-Rs 2,365.
However exit this stock if it falls to the level of 2065 as thereafter stock can fall to the level of Rs 1,730-Rs 1,675. Medium term trend in stock remains down and short term trend is presently up


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