Analysis of BANK NIFTY

Previous week we saw decent fall in Bank Nifty and it has closed below all MAs. BN is looking very bearish. But is it all? Let’s see..

The broader picture...

After giving selling cross in stochastic, till date BN has broken all trendline support and trading below it. We have another three trading days to go, BN has to save 11150 level to get some breather. But till it is trading below 12050, it is short on rise. Only a close above 12050 may change the scenario for the time being.

The medium term...

Although weekly chart of BN is looking very bearish but hope starts to build in no-confidence zone. As the weekly chart suggests 10350 is decent support and weekly closing above 10810 is hood for some 500-600 (or more) points upmove. As of now weekly chart is oversold (although it can be in oversold zone for long only price may confirm upmove) and may look for some respite before fall again. 

The immediate term...

On 30 min chart, we can see positive divergence till closing and it may have some effects with some upmove. As per 30 min chart, 11200 level is decent resistance. 

Levels

5EMA: 10747   21DEMA: 11198  5DSMA: 10825 5WEMA: 11243

Wish you happy trading...

Analysis of NIFTY : 18-December-2012

Today NIFTY moved exactly as per our yesterday's EOD Analysis. We said, "watch out that level (5875-5880) too where SHORT may be initiated with small SL" and NIFTY made low of 5823 from 5882.

In yesterday's chart, bullish possibilities were discussed and NIFTY moved up from support area of 5830 (marked by thick green line in yesterday's chart) to 5905; as we said "Above 5865 NIFTY may target 5878/5886/5905".

So, will the upmove to continue?

Let's find out...

With corrective downmove from 5961 to 5823 RSI created more space to move up and so is Stochastic. Volume was better and broken out of downward slopping line. So, positive move may be seen in NIFTY.

Tomorrow NIFTY may open positive but 5930 level becomes important zone where we may see some consolidation or correction. Surpassing 5930 may invite DECENT UPMOVE.

Wish you happy trading !!!

Analysis of NIFTY: 13-December-2012

NIFTY moved as per our EOD Analysis and Opening bell; on 11/12/12 our observation was " NIFTY was trading below today's NP-SAR although it was above developing SAR and it closed above tomorrow's level of NP-SAR. This is an early indication of developing weakness in NIFTY."

Now what next? Let's try to find out...

NIFTY is trading well below NP-SAR and 5 EMA. It is seen that triggering of NP-SAR gives atleast 50 points most of the time and we got 50 points today itself. Now, we may hold our short for immediate target of 5830/5805/5790.

But is that all? I think no. If we look at NIFTY chart carefully, rounding top is developing which is a pretty good reversal sign. A close below purple line will be triggering of immediate reversal. Although it is too early to say that reversal is on way but, we may consider it a possibility; ofcourse developing price pattern will confirm our possibility. The best thing that we can do trail our SL according to NP-SAR.

MacD is about to give Sell Cross and Stochastic is hinting towards downward movement. RSI is coming down from OB zone.

We should stay short and keep booking profit at regular interval and keep our levels ready.

Wish you happy trading !!

Analysis of NIFTY: 10-December-2012

Today Nifty traded within narrow range of 32 points, but has left enough clue about tomorrow's move.

The 30 min chart clearly shows NIFTY closed above all major EMA's at 5908. RSI is oversold and is prepared to move up. CCI is also ready for the up-move. So, the possibility is there, that NIFTY may move up tomorrow.

On the upper side 5930/5950/5980/6040 are the levels to watch out.

Daily indicators are over bought along with weekly indicators. So, it is advisable to stay cautious at higher level.

Buy the dips should be strategy for trading right now until any clear reversal sign is visible.

Today our free call on Federal Bank did exceedingly well. You are requested to visit Nifty Pulse Page for free calls and updates during market hours.

Wish you happy trading !!

Opening bell for 10/12/12

Good Morning !!! Today NIFTY may open flat to positive.  5930-5950 s\is resistance zone for NIFTY. Above that level NIFTY may move upto 5980/6040/6070. On the other hand, sustaining below 5890, NIFTY may target 5870/5850/5830/5810.

Closing below 5870 should be considered weak. 

NP-SAR of 10/12/12 : 5866

Please visit NIFTY Pulse Page in Facebook for daily free calls.

Wish you happy trading !!