Wednesday, 6 March 2013

Nifty Update :- 4

 Nifty 15 min chart:  

Nifty hourly chart:

We have mildly bullish setup in nifty chart as shown in 15 min and hourly chart attached. Target for the inverted head and shoulder comes around 6035. But for that we need high volume break out of 5840-5850.  This uphill battle for bull will not be an easy task.  5840 is 5 week ema and 5920 is 5 month high ema. The down trending line marked in hourly chart will act as stiff resistance.  5840-50 Zone as per charts is very important; also we have 100 days moving average and 21days EMA in that zone.  


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  1. Great work you've done here on these charts. What I find really interesting is the inverse head and shoulder pattern (kill-roy bottom) you identified. As you rightly said, there are tons of resistance indications in that range and it looks like an uphill task to break out of that level. However, we as technicians can only analyse the charts (as you have nicely done) and wait to see what happens. I believe that technicals lead the market, irrespective of what anyone feels (its my opinion) and this set up could be a really good indicator of where the price is headed. Given the right circumstances, fundamental events could occur within the coming days that will be the momentum needed for the price to move through all the resistance around that range. I don't know much about the Indian market and cant say exactly what fundamental events could support such a move but never say never. In conclusion, I would watch this chart very closely and remember that if the price for any reason breaks through this level convincingly, I would go long but if this drags on for too long and starts to retrace lower, the 5830 high may have been the new high and the NIFTY may start to go lower.

  2. think market has to close above 5945 to complete a gap. otherwise would face resistance at this level. what do you suggest. thanks