Monday, October 5, 2009

Nifty Technical’s

Nifty Daily Charts are attached as above. Nifty has gained 2.3%, but in Holiday Shortened week Nifty moved up ahead plummeting all the bears once again. FII is pouring money like there is no tomorrow. But in-spite of so gush of money Nifty is just making small moves.

Lets look at in a technical point perceptive:

1. We have formed a Doji on Thursday which is indecision between bulls and bears.
2. Current Channel in which we are trading has a trend line support around 5035 if that is broken we can easily see 4980 levels and below that 4925 levels.
3. Dow has bleeded the past 2 days when we were closed and took Asian markets with it; we have shown out performance in previous 2 weeks. It should be point of concern

Nifty Daily Pivot: 5083.7
Daily Resistance: 5110.3 5137.1 5163.7
Daily Support: 5056.8 5030.2 5003.4

Looking at the Weekly charts we are still above 5 Week EMA which is a bullish sign.
But looking at the way negative divergence seen in RSI and exhaustion seen in other oscillators, I would recommend my readers to be caution. As Correction can come anytime as Nifty PE is around 23 which is pricey 28 is a bubble like situation

I would recommend to cash out positions on every high coming and be in cash. Buy on dips if 4925-35 range holds.

Nifty Weekly Pivot 5,056
Weekly Resistance: 5110.3 5126.9 5170.3 5239.1
Weekly Support: 5012.1 4940.8 4826.2

Thanks and Regards

S&P Wealth Creators

Call 09831497250 or mail us @ S&P Wealth Creators with your Name and Mobile No. for subscription offer of intraday calls during Market hours.


Post a Comment

Please leave your comments here...