After almost 5 days of consolidation mode, Nifty drove itself on the upside yesterday and continued its move today to close above 6000. Last three post i did mention to go long on each dip and our tgt 5975 has been ahcvd. Our nxt tgts our 6062/6136/6300 are activate.. Short term traders should keep SL at 5908/5828 as per the convenience. Infosys have presented a good set of numbers and we expect other companies to do the same. So we are still intact with going long on each dip with sl of 5828
Nifty has been trading between the two lines 5750-5905. There is not much fundamentals to cheer for and nor to be upset with. We are experiencing foreign currency volatility at the highest levels. Developed markets are experiencing a turnaround. China’s inflation was announced today which is at the peak this year and and good for the slowing economy. Housing data as i mentioned in last post is improving in US whereas unemployment is stable at 7.6% Looking at commodities, Crude was trading at 42 week highs upto 5th july but since 2 days supply concerns have ease which as seen some profit booking on Crude oil around the world. Gold and Silver is stable and range bound. Dollar has been weakening against major currencies after a good rally last week due to easing economies and easing crude supplies worries. Coming to Technical terms, as headline suggest index is trading range bound between 5750-5900 while hovering all the important moving averages. Indicators are flat. But we are biased more towards upside as most of the nifty stocks are showing bullish signs. We would recommend safe trades to go long above 5900 with strong sl of 5832 then. Supports are seen at 5811/5762. DONT SHORT UNLESS BELOW 5750.
Nifty was tickling traders today. Today opened with a gap up on back of good unemployment numbers in US. PMI numbers had been improving in western countries. Today SBIN was the most beaten in frontline scripts. Weekly charts are showing some bullish confirmation on the charts. Technically i noticed some interesting things on weekly chart of Nifty. Three instances has been identical on the chart. First, was at the end of week on 08-09-2012 when nifty took support at 100 Weekly EMA and reversed with “Bullish Piercing” pattern of Candlestick. Post confirmation we got nifty movement from 5332-6100. Second instance was proven on 18-04-2013 when nifty again took support at 100 EMA and reversed with another strong pattern “Morning Star” to get move from 5780-6200 post confirmation weak. And last weak was the third instance when NIfty has reversed from 100 weekly EMA and gave third reversal patter ‘bullish engulfing”…So now we may assume we should get a short term rally from this point. So every dip is buy as i have been intimating since long. Nifty should close above 5852-5860 and will resist near to 5915-5975 for some days. So still i am biased towards long side with SL of 5730-5762 on closing basis.
On 29th January and Again on 3rd April i did posted that we are surely showing some more downside on gold and we achieved my 2cd tgt 25000 on GOld..My third tgt was around 21500 which is active now. I feel gold could further go down to 19300/16300 but 22500 is strong support and we could see a break to sliding of precious metal. So our strategy on Gold could be shorting gold on each rise with sl of 27200 with target of 22500.
It was the perfect morning for all traders as we saw a gap up opening after a long time. But for technical followers close was more perfect than opening as the closed exactly depicts a perfect bullish reversal pattern “a morning star”. All the three candles included in the pattern have shown a perfect resemblance to the pattern characteristic of morning star, i.e., both the end candles have a gap with respective to middle candle. Looking at the other side, nifty has closed back above 200 EMA which is a positive sign. Car is back on track as nifty is back in the channel. Though Channel is in down trend but it has all the possibilities that channel may be breached on upper side too with heavy volumes. Fingers crossed!!! But we are still long as i mentioned in the last post with all the upside target intact.
Nifty has been witnessed riding in the channel since last 2 months and today we saw low at that support line for 3rd time in same channel. 5750-5794 is the strong support range on the nifty charts as many technical points are clustering around the same level. Still i am not seeing much downside to gain if we short from current levels. So right now risk takers are advised to go long with sl of 5750 and safe traders are advised to take long position over 5883 with short term targets of 5960/6080