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.
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This blog is meant for all people interested in technical analysis of Indian capital markets. Here, I wish to share my perception of the share market, stocks and derivatives based on various charting techniques.
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