Skip to main content

NIFTY SHOW - 5340 BARRIER AHEAD

Nifty gave a sedated opening,with absolute no fireworks with flat market breadth of 763 advances to 737 declines.The markets were in limbo hovering in sub 5300 levels for the initial 1 hour.Later it made a move to breach 5300,retraced again to the support and took off gradually.The markets did rally but the movement was unable to reflect any strength or enthusiasm.As i said yesterday ,market need some good ingredients to fuel the rally.Today the markets halted at 5340 ,the same levels discussed yesterday.The point is ,markets are in a limbo,we got a breakout,but it fell into the broad trading range of consolidation,where markets have been trading past many days,hence i am skeptic about the breakout.
                   If markets are  short term  bullish ,they need to submit an evidence to that extend.Technically if markets are able to violate 5340 levels successfully with good volume strength,then the market may feel comfortable moving up,also 5630 would seem approachable.But till then uncertainty will keep interfering with the sentiments
                                                           On the daily charts the MACD has given a positive crossover,but is still below the zero  line.The RSI has also inched and is heading upwards.As of today the nifty has sustained short term DMAs of 20 and 40 respectively.The intraday trader should be cautious in his positions as tomorrow Reliance will come with quarter results,i guess it would be declared post closing of tomorrows session,but markets sense the things early and better,hence there might be some degree of skepticism tomorrow,it would not be fair to bet on it.

Comments

Post a Comment

Popular posts from this blog

NIFTY SHOW- A TUMBLEDOWN

Nifty closed in red with a downpour of 70 points.The nifty witnessed a flat opening followed by mild buying which encountered  a good resistance at  5300,but failing to cross the resistance,markets initiated a downpour.Infosys quarter results triggered the move downward which was followed by profit booking.The whole market breadth was strong negative with 543 advances to 935 declines.                                                                                                     ...
Post a Comment
Read more

NIFTY SHOW - BEARISH PATTERN FORMATION

As expected nifty closed in red with the loss of  35 odd points.The nifty opened with a gap down  and traded lower whole day ,the overall market breadth was also negative with  734 advances to 751 declines.The immunity of the market seems vulnerable ,still the markets are afloat the 20 and 40 DMA . Also the nifty is moving in a pattern hence the intensity ,the volumes,the participation will presumably be low.                                    On the daily charts nifty has created somewhat  an evening star. Here i would like to make it clear that the pattern is more of an approximation to the evening star, which is a bearish reversal pattern.Adding more to it ,the size of the candle clearly reflects low participation and amplitude of the pattern,hence there is not much to count on it.Also we know t...
Post a Comment
Read more

NIFTY SHOW- NIFTY AFLOAT 200 DMA

Nifty opened gap down in the  morning on account of weak global cues ,it violated the 200 DMA went down to 5136 and took of the lows gradually  to 5178 closing today's contract.the market breadth was positive with 844 advances to 637 declines. As it is due to expiry the markets were to remain subdued ,the global markets did the work of  adding oil to fire.Nifty  has maintained the 200 DMA levels as of now ,but under such a situation, the immunity of the market seems vulnerable.Hence on account of this we should allow some leeway to nifty.                                                                         ...
Post a Comment
Read more