Nifty

#126 Nifty Update: "COCKTAIL" of signals on NIFTY Chart

Again a Bollywood connection of NIFTY this week with Saif’s movie “Cocktail”. I havent seen the movie yet but from the trailer i could make out that Saif is friend with both of them and at last he has to choose from either Diana or Deepika… Same is the case with the chart abv..In this case Saif is NIFTY and Deepika and Diana are Bear and Bull… Saif (nifty) in our case is confused at this stage that whom to choose. Currently NIFTY is trading in the minor trends upward channel while its in Major downside channel, one gap above upto 5300 while another gap at 5170 on downside and its trading above all the long term moving averages while it gave false breakout of FLAG pattern. So its all Hoch-Poch on the nifty side technically. You might be questioning why is that thick resistance line drawn below few candles?? But you may notice that all the close are at the Line so the line is valid and secondly 2 candles have given a marginal close above the line but the next day again it closed at the line so breakout is not confirmed. Fundamentally, we say many events last week starting with INFOSYS worst performance last quarter and better performance from TCS. IIP numbers has improved MoM. Inflation number next week will  also be reflected on the next week move. Internationally we have seen same mixed news last week. Jobless claim has decreased in US but LIBOR scandal is taking heat in media and it is expected to cost $20billion to banking industry if it is solved. So it was all a “Cocktail” last week in the markets around the world. Now what further on the NIFTY?? Technically speaking NIFTY should follow that small upward channel… Be long on NIFTY with stop loss of 5200…Upside resistance is at 5370 ….Speed breaker resistance at 5280,5327.. Strategy Take a long position with stop loss of 5200 and Go Short below 5160.

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