Looking at the weekly charts of Nifty, for a macro picture of the stock markets, it seems like Nifty is moving in rising channels of varying degrees.
Momentum indicators looking positive, individually stocks are giving break-outs with heavy volumes to support, all hunky-dory so far.
But, a closer look at the volumes on Nifty indicate a continuous decline. Hence, here we have "A rising market on diminshing volumes !!!!"
Studying past 10 yrs data of the weekly charts of Nifty, it can be concluded that higher the volumes, bigger is the gain on the index, or vice-versa, the higher the decline in volumes, the bigger the loss.
So far, my eye could not detect any mismatch in this relation between the volumes and index. It has always followed the rule of gaining on rising volumes and losing value on diminishing volumes.
Coming back to near-term, Nifty has strong mutiple resistances coming up at 5250-5365-5440. With the trend of diminishing volumes, I wonder if Nifty will manage to breach all or even sustain the existing !!
Trade Safe !!
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, March 18, 2010
Wednesday, March 17, 2010
SCI - The perfect bRIDE
One look at SCIs daily chart and it looks a perfect buy from each and every perception.
To initiate, it breached the 154-155 barrier today, supported by heavy volumes. 154-155 has been a multiple top resistance in the past one month.
Add to it, the 20 and 50 EMAs have converged positively, along with momentum indicators, MacdH Rsi and stochastics showing significant strength.
On a broader time frame of 9 months, SCI seems to be making higher lows and higher highs consistently, thus giving a tgt of 190-195, if the trend continues.
Weekly charts suggesting that price action, moving avgs, supporting indicators, all exhibiting strength, along with higher volumes.
Also, on the EOD chart, SCI has given a breakout after making an inverted HnS pattern which sets for an immediate tgt of 175.
So, if one has to go long at around 155-158, for an immediate tgt of 170 and a longer term tgt of 190, SCI seems like a sound trade.
Happy Investing !!
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.
To initiate, it breached the 154-155 barrier today, supported by heavy volumes. 154-155 has been a multiple top resistance in the past one month.
Add to it, the 20 and 50 EMAs have converged positively, along with momentum indicators, MacdH Rsi and stochastics showing significant strength.
On a broader time frame of 9 months, SCI seems to be making higher lows and higher highs consistently, thus giving a tgt of 190-195, if the trend continues.
Weekly charts suggesting that price action, moving avgs, supporting indicators, all exhibiting strength, along with higher volumes.
Also, on the EOD chart, SCI has given a breakout after making an inverted HnS pattern which sets for an immediate tgt of 175.
So, if one has to go long at around 155-158, for an immediate tgt of 170 and a longer term tgt of 190, SCI seems like a sound trade.
Happy Investing !!
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, March 16, 2010
Smooth sailing for Aban !!
A bullish engulfing candle on the EOD chart of Aban Offshore subsequent to a correction, makes it a strong buy contender.
20 and 50 EMAs are all set for a positive cross-over, so is Macdh. Rsi has found support at a month and half old trendline and is positively diverged. Slow as well as fast Stochastics are in an upswing as well.
Additionally, a higher high and higher low, again affirms the uptrend.
At 1240-1250, accumulating the stock with an immediate tgt of 1380, and an intermediate tgt of 1465, seems like a promising pick.
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.
20 and 50 EMAs are all set for a positive cross-over, so is Macdh. Rsi has found support at a month and half old trendline and is positively diverged. Slow as well as fast Stochastics are in an upswing as well.
Additionally, a higher high and higher low, again affirms the uptrend.
At 1240-1250, accumulating the stock with an immediate tgt of 1380, and an intermediate tgt of 1465, seems like a promising pick.
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.
Friday, March 5, 2010
Bankex - a preview !!
On EOD charts bank nifty has made a doji - suggesting an indecisiveness of trend. However, if we take a broader horizon, at 9038 bank nifty has closed a little below a 6 month old trendline.
The daily momentum indicators are looking at peak, with stochastics and MacdH in the OB zone. Add to it, the price candle has moved away from its 5 EMA. Thus, it wouldnt be surprising to see bank nifty correct to refresh the indicators.
If on closing basis, bank nifty manages to breach this trendline and its prev days high of 9095, the tgt to look out for will be 10k or above.
However, if this resistance is not broken, bank nifty may keep moving in the channel it is currently in with a downside support at approx 8150-8200 and upside at 9000-9050.
Looking at the weekly charts, and the strength the momentum indicators, moving avgs and price aaction is indicating, it seems likely that bank nifty will manage to break this resistance and reach its prev all-time high.
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 are looking at peak, with stochastics and MacdH in the OB zone. Add to it, the price candle has moved away from its 5 EMA. Thus, it wouldnt be surprising to see bank nifty correct to refresh the indicators.
If on closing basis, bank nifty manages to breach this trendline and its prev days high of 9095, the tgt to look out for will be 10k or above.
However, if this resistance is not broken, bank nifty may keep moving in the channel it is currently in with a downside support at approx 8150-8200 and upside at 9000-9050.
Looking at the weekly charts, and the strength the momentum indicators, moving avgs and price aaction is indicating, it seems likely that bank nifty will manage to break this resistance and reach its prev all-time high.
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, March 1, 2010
Union Budget 2010 - An Insight !!
Friday, 26th Feb., FM Pranab Mukherjee presented the Union Budget 2010. When Mr Mukherjee started off the budget speech, he mentioned that the key challenges that govt is facing are, one, that of GDP growth, to sustain the 9% expected growth and overcome the "double digit barrier". And, two, food inflation that has gripped the economy in recent times.
Sounded promising... But as we go ahead to read the complete budget, I think both the key issues have lost ground somewhere.
Firstly, food inflation. With a hike in fuel prices, hike in excise duty of large vehicles, I believe that transport will be dearer. Despite several incentives given to farmers like raising ECBs for cold storage, extending the repayment of farming loans by 6 months, etc., I doubt if this dearer transport will not hit food transport as well. Not only the common man bt also the farmers will be affected here.
Add to it, PDS was reduced to the tune of 400+ Cr. The most imp measure to ensure food security not given its due importance ?
Minimum value of minimum tax slab was maintained at 1.6 lacs, how does a common man get relief from the existing and the expected rising food inflation ?
Coming to GDP, with ad valorem component of excise duty increased in all non-petroleum, and excise duty, basic duty increased petrol and diesel, it will hit the manufacturing costs, thereby, making them dearer and affecting demand.
Though a major part of allocation was provided for infrastructure, which is a major factor of economic growth, I doubt if a common man will enjoy this growth as much in the wake inflation touching new highs !!!
I rest my views here. Happy holi to all !!
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.
Sounded promising... But as we go ahead to read the complete budget, I think both the key issues have lost ground somewhere.
Firstly, food inflation. With a hike in fuel prices, hike in excise duty of large vehicles, I believe that transport will be dearer. Despite several incentives given to farmers like raising ECBs for cold storage, extending the repayment of farming loans by 6 months, etc., I doubt if this dearer transport will not hit food transport as well. Not only the common man bt also the farmers will be affected here.
Add to it, PDS was reduced to the tune of 400+ Cr. The most imp measure to ensure food security not given its due importance ?
Minimum value of minimum tax slab was maintained at 1.6 lacs, how does a common man get relief from the existing and the expected rising food inflation ?
Coming to GDP, with ad valorem component of excise duty increased in all non-petroleum, and excise duty, basic duty increased petrol and diesel, it will hit the manufacturing costs, thereby, making them dearer and affecting demand.
Though a major part of allocation was provided for infrastructure, which is a major factor of economic growth, I doubt if a common man will enjoy this growth as much in the wake inflation touching new highs !!!
I rest my views here. Happy holi to all !!
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.
Subscribe to:
Posts (Atom)
Posts
