Category Archives: Nifty

#4 Nifty Update

NIFTY as expected closed in red today at 5785.70.  NIFTY had two big news today 1) Sun Pharma’s Deal with Merck and 2)IIP date of Feb. Sun Pharma news was stock specific and it was a deal worth 60000 cr while IIP data were negative which acted as a catalyst to bearish trend for the NIFTY. Relinfra’s buyback offer opened today which Cairn India’s open offer at Rs.355/share was also opened today but NIFTY reacted more strongly on IIP data and was down almost by a 1%. NIFTY opened at  5805 and hovered around 5824 which was my support but as soon as IIP data were announced it came down to another support at 5790 and was around the same level until last 30 mins when it touched 5775. Now RSI and Stochastic is yet turning down and showing a bearish trend for short term. While weekly and Monthly RSI also turned downside showing a bearish trend. NIFTY should bounce back from 5750 or latest frm 5700 breakout of that level otherwise will result into more bearish trend. BankNifty and Nifty Midcap are supporting NIFTY50 therefore don’t take any fresh long position until reversal is confirmed.
Levels for 13th April 2011:
S-5759       R-5823
S-5721       R-5855
S-5700       R-5906
S-5666       R-5937

#3 Nifty Update

NIFTY closed in Red at 5842 as expected. It made a low at 5822 near my suggested level of 5824. NIFTY first hovered around the level of 5862 which was my first support after breaking that it came down to 5822 which was next support. NIFTY now has confirmed a small correction about 100 points from this point. NIFTY confirmed downtrend on daily charts by preparing a red candle after a doji and on the same time on Weekly chart it has created a “Grave Stone Doji” which is a sign of reversal towards down. On daily charts Stochastic made crossover signaling a Sell but it is still in overbought condition while RSI has came down from overbought condition towards down supporting the down trend. Weekly and Monthly Stochastic and RSI are signaling Bulls Strength so strategy on NIFTY can be buying on DIPS. Best Buy levels can be 5795 and 5753 on dips while on uptrend buy above 5937.  
Levels for 11th April
S-5824      R-5862
S-5807      R-5886
S-5795      R-5937
S-5753      R-6015

#2 Nifty Update

NIFTY closed today at 5885.70. NIFTY made low and took support at 5866 as mentioned by me yesterday.  Today NIFTY daily created a Doji which is a sign of reversal of prevailing trend which in our case is bullish trend.  5day EMA is at 5866 which is acting as a support for NIFTY since last 2 trading sessions. NIFTY has traded in range between 5866-5937 till now in this week which is a “line” formation as per Dow Theory. “line” formation indicates a consolidation phase and breakout on either levels (5866 or 5937) would decide the next trend. Prevailing Week candle on Weekly chart has formed up a shooting star at top of the trend which might be a sign of small correction. Daily oscillators (RSI and Stochastic) are indicating a downtrend and MACD also joined the race for showing a slight turnaround. But weekly indicators are showing some upward movement but 14week RSI has entered overbought condition. Now question arises where will market head towards??? We will get the answer in  2 trading sessions but tomorrow watch out for 2 crucial levels 5866 and 5937.

NIFTY levels for 8th April
S-5862      R-5906
S-5824      R-5937
S-5790      R-5964
S-5753      R-6025

#1 Nifty Update

NIFTY closed at 5891.75 today. NIFTY daily momentum indicators are trading in overbought condition but Weekly indicators are yet bullish on the market which means that there might be small correction of 50-100 points with 2-3 trading sessions. On daily charts NIFTY is trading above all the moving averages and at the same time we just saw crossover of 20EMA over 100EMA and 50EMA cross over 200EMA which is  a bullish sign, on the other side 5weekEMA crossed all weekly EMA’s which suggests a strong weeks on NIFTY. AS per the Fibonacci Retrenchment drawn on daily NIFTY of last one year the nearby resistance level is 5937 and NIFTY validated it yesterday and day before. Even the resistance trend line (which was a support line as for trend since 2009-Jan 2011) intersects Fibonacci at 5937 level which makes it a strong Resistance level for next few sessions. Hence we might see some correction to the current bullish market but it doesn’t seem to long. With the Mid-Caps leading the race market seems to cross 6000 level mark once it crosses 5937 on closing basis.
NIFTY levels:
S-5862      R-6037
S-5767      R-6082
S-5646      R-6165
S-5608      R-6285