Nifty broke the range of 5040-5160 and moved up-to 5400 and developed a new range in earlier support zone of 5370-5220 a decisive break of this range is likely to give good direction to Nifty.
Let us see the alignment of some of the key technical Indicators
Ichimoku Kinko Hyo: Ichimoku gave a buy signal near 5040 level, during the previous week nifty traded above the cloud making the buy signal stronger, the first sign of weakness would be only on price entering the cloud near 5220 level for the week.
The circles marked dark blue show that nifty is currently getting support at the conversion line nearly 5240 level.
Bollinger Band: Nifty tested the top of the band and has started to move down again, strength remains as long as nifty trades above the rising mid of the band around 5150 level.
Price behaviour in Nifty suggest that the short term top is in place and correction/consolidation is in process.
WEEKLY BOLLINGER BAND: In the weekly charts Nifty is rising from the bottom of the band, mid of the BB of the week is roughly around 5200 level and previous week close was supported at the mid of the band, a break below the mid of the band on closing basis would turn the tide in favor of the bears.
NIFTY MOVING IN A CHANNEL
From the up move to the high of 6339 to a low of 4720 nifty is moving in a channel, giving good trades, nifty after touching the lower end of the channel at 4720 level rose sharply but failed to test the upper resistance line near 5470 level and started moving down after a big gap up opening near 5400 level, if fail to cross the resistance it would be heading toward making a newer low on the Index.
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| BUZZING NIFTY: NIFTY CHANNEL |
38 DAY EMA : This moving average has been successively giving good trades throughout the year 2011,only a comfortable move past 5020 level has add strength to the BULLS
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| BUZZING NIFTY: PRICES ABOVE 38DEMA |
NIFTY SHORT TERM CHANNEL
The current up-move of nifty is in a channel and a break of the channel would show early signs of change in the trend the support of nifty is near 5260 level and resistance is near 5493 levels.
Nifty staying above 50and 100 DMA and almost tested its 200 DMA at 5416 odd levels, the chart suggest that the price action in previous occasions have failed to move above 200DMA and is likely to act as a resistance this time around as well. the support of 100 DMA comes around 5240 level.
NIFTY BUMP AND RUN REVERSAL:
Nifty broke the down trend and the chart pattern suggest a reversal in Nifty, price staying above the trend line favors bulls
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| BUZZING NIFTY:BUMP AND RUN REVERSAL |
THE WEEK AHEAD:With nifty trading in a narrow range buying near supports and selling near the resistance has given good profits, only a break of the range would give a larger trade setup, until the range is resolved trade light and book smaller profits.
Expected range for the week 5163-5322, trades taken near these levels would give good trade setups.
Buying near 5170-75 with SAR at 5160 and selling near 5310-15 with SAR near 5330 should be the strategy for the conservative traders
Levels to watch till the range is resolved and a clear trend emerges 5260-5299-5330
HAPPY TRADING!!!!!!!!!
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2 comments:
Vedanta and Coal India are dragging the index to lower levels, Vedanta is trading down 0.3% at Rs 259.90 per share and Coal India is trading down 0.5% at Rs 257.45 per share.capitalstars
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