Monday, October 5, 2009
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
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