NIFTY WEEKEND ANALYSIS for week ended 16th April. 2011

Nifty is stuck to 5842  level for quiet some time now,this week also saw not much change and closed marginally low at 5823, due to time constraint, could not post the update till market closed on monday, but the charts are as markets at close on 15th

Let us see the alignment of some of the key technical Indicators

  Ichimoku: Gave a weak buy signal on 23^th March with the nifty around 5420 level  and nifty trading below the KOMU but the rise during the week not only took nifty into the cloud but managed to move wall past the upper boundary of the cloud,For the first time since the fall from Jan the price action have moved above the cloud, indicating the power of the bulls at the moment, the first sign of weakness was seen on Friday when the price action was below Tenken Sen, Nifty trading below 5840 gives some hope to the bears, likely to get strength when nifty starts trading below 5682, which is the upper boundary of the cloud.

BUZZING NIFTY: ICHIMOKU

 

BollingerBand: After trading near the top band of bollinger bears were finally able to bring a hault to the price movement , the next support would be around the mid line of the band currently @ 5704.

 

BUZZINGNIFTY: DAILY BOLLINGER BAND

 In the weekly chart the prices rose from the bottom of the bollinger band,  cleared the first resistance by moving past the mid value of the bollinger and trading above it , on its way up it could take nifty to 6100+ odd levels, the current support is around 5684 level.

BUZZINGNIFTY: WEEKLY BOLLINGER BAND

DEATH CROSS( 50DMA Crossing  below 200DMA)

The DEATH CROSS was Formed in Nifty on 4th March 2011, It is considered highly Bearish, The Last Time when we saw this formation Nifty slipped from 4800 levels to 2300 odd Levels, as the name itself indicates highest degree of Bearishness

However  nifty decided to move past 50&200 DMA,the bears will hope to do major damage as long as 200 remains below 50 sma.

Recently  there was a similar cross in S&P Index in US, but the Price movement proved otherwise,will this happen to our markets as well, currently the support of 200dma is at 5723, below which nifty gets weak.

BUZZINGNIFTY: DEATH CROSS

  

RESISTANCE AND SUPPORT;As can be seen in the chart the resistance is at 5907, the line shows nifty got resisted at it several times,  for nifty to continue its journey north this needs to be taken out decisively.

 

BUZZINGNIFTY: TRIANGLE FORMATION/ SUPPORT AND RESISTANCE LINES

For the week support is seen near 5690-80 level and resistance near 5906, risk reward ratio for the positions taken near these levels would be high near these levels, a break of this range will give clear direction to nifty .