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

possible pullback around 5885...but bias remains -v

Negative bias in ACC and Nifty

Nifty showing weakness

Nifty outlook for 11-11-2012 ( daily and Weekly)

Nifty ended the day on negative note at 5686 levels by losing 52 points. After opening seven points lower at 5731 levels, Nifty rose higher and made day’s high at 5751 levels in an early trade. Thereafter, witnessing continuous selling pressure, Nifty slipped at day’s low at 5677 levels.

The formation of “Red” candle with higher upper shadow on daily chart which implies selling pressure indicates weakness in the market. In case, if Nifty fails to hold 5710 levels which is acting as important resistance levels of the day as 50% correction levels of ”Red” candle then weakness will persist further  i.e. below 5680 it will lead 5640 and below that 5600 levels. On the contrary, if Nifty succeeds to hold and sustains above 5710 levels then bearish effect will get nullify and market will test 5800 levels in coming session.

The level of 5650 will act as trend decider levels. A sustainable move above this levels will lead pullback rally in the market. However, failure to trade above this levels will lead further fall in our view.

Support               1)  5650  2) 5610

Resistance          1) 5710   2) 5750

Weekly  Outlook

Nifty ended the week 11 point lower at 5686 levels against previous weeks 5697 levels. Mid cap index rose 0.23% and Small Cap index gained 0.07%. Both indices outperformed the market.

On Weekly chart, Nifty has formed small body “High wave” pattern with higher upper shadow. This indicates that the market is having difficulty coming to a consensus on security’s value. It means this indicates indecisive nature of market as neither buyer nor the sellers have a clear sense of the direction where demand and supply are equally balanced.  In this kind of scenario, the level of 5720 on higher side and 5640 on lower side remains important levels to watch for the week. If Nifty manages to hold and sustains above 5720 levels then trend will remain positive. In that case Nifty will test 5820 levels in coming session. On the other hand, if Nifty fails to hold and remains below 5640 levels for the week then trend will remains negative. In that case, Nifty’s possibility of violating 5500 marks can not be ruled out.

The level of 5370 will act as trend decider level for the day. A sustainable move above this level will lead continuation in upward rally in Nifty. However, failure to trade above this level will lead at least intraday correction around 5340-30 levels in Nifty.

Weeky

Support           :-      1)   5630  2)  5550

Resistance      :-       1)  5730   2)  5820

Nifty Outlook for 07-11-2012

Nifty gained marginal strength amid volatility in late trade following up move in European markets ahead of US Presidential Elections. Nifty closed 20 points higher at 5724.20 levels against previous day closing 5704.20 after witnessing days low at 5693.65 levels. It made days high at 5730.80 levels before close.

On daily chart, Nifty has formed a Bullish candle with upper shadow against previous day’s bull candle. It also has maintained the previous gap ( 5649 to 5679 levels which formed on 1^st November). This indicates bullish sentiment but never negates the possibility of profit booking on higher levels.  In this case, the levels of 5750 will act as important levels to watch. If Nifty manage to hold 5740 levels and sustains above 5750 levels for the day then we will see further extension in the trend. In that case, Nifty will test 5820 levels in coming session in our view. On the contrary, failure to do so will result in profit booking which will lead downward correction in Nifty.  In that case, Nifty’s possibility of testing 5660 or lower levels in intraday trade can not be ruled out. 

The level of 5750 will act as trend decider level for the day. A sustainable move above this level will lead continuation in upward rally in Nifty. However, failure to trade above this level will lead at least intraday correction around 5660-30 levels in Nifty.

Daily

Support           :-      1)  5700   2)  5660

Resistance      :-      1)  5750   2)  5790