The above sheet is showing the comparison between the Nifty movement from 2008-2010. Now nifty is close last week as the same as closed at 09 May,2008. So Nifty follows the trends. Also history repeats again.
Weekly Nifty Trend :
- Bearish black candle breaking and closing below the trend line from March 2009 lows.
- Volumes were good and breadth very negative.
- Oscillators are weak below the 50 level and macd is once again in sell mode.
- Trend line support at 4814
Daily Nifty Trend : -
- Fall continuously on all days of the last week on increasing volumes and extremely bad breadth.
- 61.8 % fibo support at 4955 of rise from 4675 .
- Oscillators weak and stochastics in oversold zone in positive divergence.
- Taken support on trend line from 3918. Must trade above 4990 for a bounce from the trend line.
- 200 dema at 4880 coinciding with the 50% fibo level of rise from 3918 and the 200dsma is at 4962 almost coinciding with 61.8% fibo level of rise from 4675.
The nifty has fallen sharply for the last 5 trading days without respite.The daily and weekly oscillators are weak and indicating further fall. The intraday charts though are showing positive divergence and very minor bullish patterns which could develop into a small bounce.Strong supports at 4960-4955-4880 supports this possibility.
Trade above 5046 is necessary for further bullishness.Resistance is at 5150.
The trend is down and one should look for opportunities to short on rallies.
Happy Trading !!
Dipak Sharma
sdipak83@sify.com
9372486367
Nice and quite useful blog. Would like to say that stock market hardly gives any second chance. Once opportunity lost means it’s gone forever. Now the biggest question is how to grab trading opportunities every time we trade?
ReplyDeleteWell here comes the technical analyses handy. Just rely on research rather than your guts feeling and one should stop speculating in the Stock Market.
Follow few basic trading rules and we are sure one can earn huge amount in the Indian stock market only by trading in NSE and BSE
Thanks & Regards,
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