Saturday, July 30, 2011

Nifty: Path Ahead!

Nifty Daily:
Nifty 30 mins:
Nifty 30 mins: Path ahead!

Nifty consolidated on last trading day of the week and closed the gap formed the previous day. We might form a bottom soon and market did not sell off even when major global indices were in red. Also close of gap indicates loss of selling pressure.

As shown on daily chart, 15 days time cycles have been doing a great job in catching short term bottoms or resulting into atleast some consolidation. Following are the reasons we expect some short term bounce:
- Cycle lows are already in place at Friday’s low or shall form a low over next 2 days
- Blue Pitchfork midline support also lies at 5450 shown on Daily chart
- Trendline support comes in at 5440 Daily chart
- Wave (c) = (a) at 5440
- 61.8% retracement of previous up move is near 5440
- ROC on 30 mins shows strong recovery and positive divergence
- Corrective channel support lies at 5430 shown on 30 mins chart

All these indicate positivity to us but we will still wait for price confirmation above 5530. As long as this level is not taken out on upside and if prices start steep selloff from here below 5530, we will resume downtrend but that looks a low probability scenario atleast for now.

PATH AHEAD: As shown on 30 mins chart, we think this is how prices should move over coming week. It is going to be difficult and more dynamic from trading perspective and there will be only small trends in either direction. However the short term bias remains towards upside unless a strong selloff starts now.


  1. nice work! what would your take be on reliance?

  2. the capitulation is on and we should see short term bottom in place soon, risk reward ratio is turning towards buy side, I think max. sensex can go is 16900