A doji followed by a small red candle, followed by a shooting star, after a upmove. Plus, MacdH seems at its peak, while Stochastics has given a negative divergence on Nifty fut EOD chart... too many indications to a correction.
On weekly charts, Momentum indicators Rsi, Stochastics and MacdH, all have given positive divergences. But, the price candle is a small green doji with a low of 5155.
On the other hand, Bank Nifty has almost made a gravestone doji candle on its EOD charts, suggesting weakness.
To sum it all, I believe that we may witness a correction in the coming session. Below 5198, Nifty may tank further down to its 5 EMA at 5162. However, if Nifty breaches the low of prev weeks candle at 5155, we may further see a bear rally upto 5138 or further down.
Trading with negative bias will be easier. A very happy New Year and Happy Trading !!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
Thursday, December 31, 2009
Wednesday, December 30, 2009
Intraday view
Nifty Dec fut corrected nearly 50 pts. from high of 5198 of the day, to make a low of 5155.
Individually some constituent of Nifty is showing weakness on the daily charts, whereas some showing strenght. It is a little difficult to decide the trend for the coming session. However, banking stocks seem to be in a buy/accumulating mode.
I believe, on intraday basis, Nifty may test, 5136 below, 5161. However, upside it may test 5198-5224, above 5179. Upside seems more likely.
Happy Trading !!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
Individually some constituent of Nifty is showing weakness on the daily charts, whereas some showing strenght. It is a little difficult to decide the trend for the coming session. However, banking stocks seem to be in a buy/accumulating mode.
I believe, on intraday basis, Nifty may test, 5136 below, 5161. However, upside it may test 5198-5224, above 5179. Upside seems more likely.
Happy Trading !!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
Tuesday, December 29, 2009
Perfect New Years eve for the bulls....
After a long vacation, the week has begun with Nifty Dec series confirming the bullish engulfing pattern on weekly charts, by breaching the high of the prev. weeks candle of 5210, indicating a bull rally for the coming sessions. Momentum indicators RSI has given a positive divergence, MacdH and Stochastics in the positive terrain on weekly basis.
On the daily charts, MacdH is showing first sign of strength, suggesting a continuation of uptrend. RSI, stochastics already in the positive terrain.
However, on EOD Nifty has formed a Doji which suggests undecisiveness of the trend. Also, the price candle of Nifty Dec fut is above its 5 EMA, which is at 5136 approx. On intraday basis, Nifty is in the highly overbought region, suggesting that we may witmess a healthy correction in the coming session on intraday basis. I believe that Nifty should retrace back to its 5 EMA at 5136 once before continuing with the bull rally.
Below 5195, Nifty may test 5138 on intraday basis. On the upside, above 5215, Nifty may test 5246.
Trading in Nifty with a negative bias would be more comfortable after a series of bullish green candles seen in the prev week.
I rest my views... Happy Trading !!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
On the daily charts, MacdH is showing first sign of strength, suggesting a continuation of uptrend. RSI, stochastics already in the positive terrain.
However, on EOD Nifty has formed a Doji which suggests undecisiveness of the trend. Also, the price candle of Nifty Dec fut is above its 5 EMA, which is at 5136 approx. On intraday basis, Nifty is in the highly overbought region, suggesting that we may witmess a healthy correction in the coming session on intraday basis. I believe that Nifty should retrace back to its 5 EMA at 5136 once before continuing with the bull rally.
Below 5195, Nifty may test 5138 on intraday basis. On the upside, above 5215, Nifty may test 5246.
Trading in Nifty with a negative bias would be more comfortable after a series of bullish green candles seen in the prev week.
I rest my views... Happy Trading !!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
Thursday, December 17, 2009
Negative crossover ...
Nifty Dec Fut, on its EOD formed a Doji today, which suggests an indecisiveness of the trend. Stohastics and MacdH suggest a likely exhaustion of the downtrend or continuity of consolidation.
However, 5 and 20 EMA have given a negative divergence on daily chart. This crossover will confirm its potency only if Nifty manages to breach todays low of 5009 in the coming session.
In the wake of food prices inflation nearing a record 20% mark for the week, and weak global cues, after the Federal Reserve indicated it would start pulling back some emergency supports as the economy improves, I believe that the coming session will witness an importunate selling pressure by the bears.
The levels that we can look out for are, below 5038, Nifty may test 5012-4975. On the upside, above 5040, it may test 5071-5103 levels.
Trade safe ... Happy trading !!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
However, 5 and 20 EMA have given a negative divergence on daily chart. This crossover will confirm its potency only if Nifty manages to breach todays low of 5009 in the coming session.
In the wake of food prices inflation nearing a record 20% mark for the week, and weak global cues, after the Federal Reserve indicated it would start pulling back some emergency supports as the economy improves, I believe that the coming session will witness an importunate selling pressure by the bears.
The levels that we can look out for are, below 5038, Nifty may test 5012-4975. On the upside, above 5040, it may test 5071-5103 levels.
Trade safe ... Happy trading !!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
Tuesday, December 15, 2009
Winter Blues !!
Nifty Dec fut tanked a good 90 pts from its prev close of 5107 to make a low of 5017. It broke a major support of 5051, which was its prev candle low on weekly charts, confirming a negative trend. After making tweezer tops on weekly basis, Nifty has managed to break the low of last weeks candle, giving rise to pessimism.
On daily chart, Rsi, stochastics, macdh, all momentum indicators have given negative crossovers. On weekly basis as well, Rsi, stochastics given negative divergences.
The price action as well as indicators are very much in synch suggesting a bearish trend for the upcoming sessions.
A month long trendline may give some support at 5001 levels. But, considering the fact that all momentum indicators suggesting weakness in the mkt, I believe that bears will break this support effortlessly in the coming session.
I believe the levels to watch out for in the coming session are, below 5071, Nifty may test 5001-4965. However, on the upside, above 5075, we may witness some profit booking and Nifty may test 5110-5123.
I rest my views here ... Happy trading !!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
On daily chart, Rsi, stochastics, macdh, all momentum indicators have given negative crossovers. On weekly basis as well, Rsi, stochastics given negative divergences.
The price action as well as indicators are very much in synch suggesting a bearish trend for the upcoming sessions.
A month long trendline may give some support at 5001 levels. But, considering the fact that all momentum indicators suggesting weakness in the mkt, I believe that bears will break this support effortlessly in the coming session.
I believe the levels to watch out for in the coming session are, below 5071, Nifty may test 5001-4965. However, on the upside, above 5075, we may witness some profit booking and Nifty may test 5110-5123.
I rest my views here ... Happy trading !!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
Monday, December 7, 2009
The Big "R"
Nifty shedded a good 85 pts from its high of 5135 today. Reason, I believe was, that Reliance Ind. bonus shares were credited over the weekend and were admitted to trading today. And we witnessed heavy profit booking in it.
Cummins India looks very promising technically. It has consistently made higher highs and higher lows on EOD charts since 13/7/09, when it first brokeout into a rally.
Its Dec Fut at 405, has closed above its prev close, suggesting a continuity in the bull run. The daily momentum indicator Rsi and Stochastics have given positive divergences, with MacdH trading in the positive territory. The volumes of the stock has surged confirming the trend. Its near term target should be 440-454.
On weekly charts, Cummins is trading above its prev. weeks high suggesting a confirmation of the bullish trend.
Coming back to Nifty has closed at 5069, below its prev days low of 5078, suggesting weakness. The confirmation comes thru the daily momentum indicators, Rsi almost on the verge of giving a negative crossover, Stochastics and MacdH already in the negative terrain.
On the upside Nifty may test 5107, above 5086.
However, almost all individual consituents of Nifty are neutral to bearish on EOD charts, hence flipside is more likely and comfortable to trade for the coming session. The downside targets would be, below 5081, Nifty may test 5055-5030.
Trade well .... Happy Trading !!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
Cummins India looks very promising technically. It has consistently made higher highs and higher lows on EOD charts since 13/7/09, when it first brokeout into a rally.
Its Dec Fut at 405, has closed above its prev close, suggesting a continuity in the bull run. The daily momentum indicator Rsi and Stochastics have given positive divergences, with MacdH trading in the positive territory. The volumes of the stock has surged confirming the trend. Its near term target should be 440-454.
On weekly charts, Cummins is trading above its prev. weeks high suggesting a confirmation of the bullish trend.
Coming back to Nifty has closed at 5069, below its prev days low of 5078, suggesting weakness. The confirmation comes thru the daily momentum indicators, Rsi almost on the verge of giving a negative crossover, Stochastics and MacdH already in the negative terrain.
On the upside Nifty may test 5107, above 5086.
However, almost all individual consituents of Nifty are neutral to bearish on EOD charts, hence flipside is more likely and comfortable to trade for the coming session. The downside targets would be, below 5081, Nifty may test 5055-5030.
Trade well .... Happy Trading !!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
Saturday, December 5, 2009
Clouded directions !!
Fridays session witnessed a correction of 55 pts from its prev. close of 5132. Nifty Dec opened gap down, recovered 80 pts., and further, tanked to make a low of 5078. It was a volatile trading session.
The price action has shown signs of correction, however, the daily momentum indicators Rsi and MacdH are still showing signs of strength. Stochastics, on the other hand, has given a negative divergence suggesting weakness.
On Intraday, hourly chart of Nifty has formed a doji above its 200 EMA, followed by a large green candle breaching the high of prev. candle, suggesting bullishness for the first session of trade in the coming week.
To summarise, it seems like on Monday, we may witness a whipsaw trading session because of the mismatched direction of the indicators and price action. If Nifty manages to trade convincingly above 5125, it may test 5156-5188 levels. On the flipside, if Nifty breaks 5120, it may test 5088-5065 levels.
Happy Trading !!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
The price action has shown signs of correction, however, the daily momentum indicators Rsi and MacdH are still showing signs of strength. Stochastics, on the other hand, has given a negative divergence suggesting weakness.
On Intraday, hourly chart of Nifty has formed a doji above its 200 EMA, followed by a large green candle breaching the high of prev. candle, suggesting bullishness for the first session of trade in the coming week.
To summarise, it seems like on Monday, we may witness a whipsaw trading session because of the mismatched direction of the indicators and price action. If Nifty manages to trade convincingly above 5125, it may test 5156-5188 levels. On the flipside, if Nifty breaks 5120, it may test 5088-5065 levels.
Happy Trading !!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
Tuesday, December 1, 2009
A Cozy Dec. in Dalal Street
Nifty Spot today made a green morubozu candle, wherein open=low and close=high, suggesting a bullish trend.
The daily momentum indicators, Rsi, Stochastics, MacdH, all given a positive divergence. Individual derivative stocks looking extremely bullish on EOD charts.
All signals are extremely positive, and although Nifty is trading in the high resistance zone, it seems like Nifty will manage to breakout into a bull rally.
However, on intraday charts, Nifty seems to be trading in the highly oversold zone, which suggests that we may witness some correction on intraday levels. Below 5122, on intraday basis, Nifty Dec may correct to 5100.
Above 5134, Nifty may witness 5163-5194 on intraday.
I rest my views here... Trade well !!!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
The daily momentum indicators, Rsi, Stochastics, MacdH, all given a positive divergence. Individual derivative stocks looking extremely bullish on EOD charts.
All signals are extremely positive, and although Nifty is trading in the high resistance zone, it seems like Nifty will manage to breakout into a bull rally.
However, on intraday charts, Nifty seems to be trading in the highly oversold zone, which suggests that we may witness some correction on intraday levels. Below 5122, on intraday basis, Nifty Dec may correct to 5100.
Above 5134, Nifty may witness 5163-5194 on intraday.
I rest my views here... Trade well !!!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
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