Skip to main content

Nifty Technical view for 26-12-2012

Nifty ended marginally positive despite 22 points gap up opening. After strong opening, Nifty could not maintain the strength as investors booked profit at higher levels ahead of Tuesday’s Christmas holiday and Thursday’s expiry of December Derivative contract. As a result,  Nifty slipped down and registered day’s low  at 5844 levels, maintaining Fridays low( 5842) and finally closed at 5855 levels. It made a  days high at 5871 levels.






On daily chart, Nifty has formed a Red “in body” candle with higher lower tail called “Harami black”. The Japanese definition of this candle means pregnant woman.  The presence of this candle indicates that market may see pullback in an early trade but only stable move may change the direction of the market. In such a scenario, the levels of  5840 on downside and the levels of 5880 on upside remains important levels to watch for the day. In case, if market holds and sustains above 5880 which is acting as important resistance for the day then we will see continuation in upward rally i.e. above  5880 levels it will test 5920 in coming trade ( remember, stable move above 5920-30 levels will diminish bears power which will lead 5980 levels.) On the other hand, if market fails to hold and remains below 5840 levels which is an important support levels for the day then  it will see further fall. In that case, Nifty will test 5760-70 levels in coming session in our view.  Overall, bias seems to be negative upto 5770 levels as long as Nifty holds below 5920-30 levels.
The level of 5840 will act as trend decider level for the day. A sustainable move above this level will lead pullback around 5880-90levels in Nifty. However, failure to trade above this level will lead  violation of 5800 levels in our view.

Daily
Support           :-      1)  5820   2)  5770
Resistance      :-      1)  5880   2)  5930







Comments

Popular posts from this blog

Nifty retraced 80% of previous move....Now 6080,6180 remains watchable levels....strong possibility to hit 6335 again but that could be the end.....

In previous article (published on Nov. 2010. Feb 2011) we said about downward large “C” wave.


Further we said that it could be a triple combination (Published on 18th Jan 2012, as long term view). In that article, we said that Nifty will hit 3800-4200 levels in case of Triple combination but in case of D’ble combination it will end nearby 4400 levels. After that Nifty witnessed 28% fall (58 trading week) up to 4531 levels from the top of 6335 levels and again rebounded at 6000 levels ( rule of D’ble combination, See below “Long term view” chart).


As per proportion of D’ble combination, Nifty achieved “at least 80%” retracement of previous move which comes at 5970 levels and still showing strength ( Remember, D’ble combination always retraces “at least “ 80% of previous move and maximum it can retrace 101% of previous move as per rule. Means, there is strong possibility that Nifty may test 6335 levels in coming session but that could be an end of “B” of large “c” wave or any wave)
In 28…

EURJPY IS TRADING IN RANGE IN BETWEEN 133.200 TO 130.9......Main trend is negative as per daily char

GBPvsUSD