Technical update on Nifty

Nifty daily chart

Nifty has made a sharp bounce back from channel support level. But now it will face resistance at trend line (marked in red , 200 DMA which is around 5660 and then upper part of channel which is also at 5660. So over all Nifty will be in a narrow range and keep surprising traders with sudden pull back or fall. Stay cautious.

Nifty medium term trend

Trend	DOWN
Initiation Date	26-02-13
Initiated at	5761
Low since change	5569
Reversal if closes above	5780

Thought for the day

The mind has to be made malleable like clay. Just as clay sticks wherever you throw it, so the mind must be made to dwell upon whatever object you concentrate it. - Swami Vivekananda

Technical update on LT

 

LT daily chart

LT has formed a triangle formation in daily chart. Breakout from this pattern is required for continuation of down trend. Till then positional trader who use break out strategy should wait and watch.

Nifty medium term trend

Trend	DOWN
Initiation Date	26-02-13
Initiated at	5761
Low since change	5534
Reversal if closes above	5780

 

Thought for the day

Stand up be bold , be strong , take the whole responsibility on your shoulder and know that you are the creater of your destiny . All the strength you want is within yourself. Therefore make your own future - Swami Vivekananda

Technical updates on Bharti and Bank Nifty

Bharti weekly chart

Bharti has breached two important supports on weekly basis. It has breached trend line support (market in red) and it has also breached support at Rs.283. Now it is likely to test previous low.

Bank Nifty

Bank Nifty is facing stiff resistance around 11600. As long as it is below this level we cannot expect sustainable rally. We have continued to hold short in Bank Nifty.

Commodity update

Among base metals Zinc has started uptrend. Stop loss is closing below Rs.101.

Nifty medium term trend

Trend	DOWN
Initiation Date	26-02-13
Initiated at	5761
Low since change	5534
Reversal if closes above	5780

Thought for the day

Who makes us ignorant? We ourselves. We put our hands over our eyes and weep that it is dark.- Swami Vivekananda

Technical updates on Nifty

Nifty daily chart

Nifty has continued to fall ans this time it has closed below 200 DMA as well as below trend line support. Close below 200 DMA indicates that primary trend is down and all bounce back will be followed by large fall in the market. Usually breakout from 200 DMA lasts for many weeks and some times months. Nifty has support at 5550 which is the bottom made on 19/11/2012. Once this trend support is breached next target will be 5500-5450.

Bank Nifty has indicated fresh short opportunity and we have executed that. Apart from this ICICI bank , LT , Infy , TCS , Bharti , R Cap are some of the stocks which have indicated short.

Nifty medium term trend

Trend	DOWN
Initiation Date	26-02-13
Initiated at	5761
Low since change	5565
Reversal if closes above	5780

Technical update on Bank Nifty

Bank Nifty daily chart

Even though Bank Nifty was trading in green in for some time it has closed in red with deep cut. It has closed below 200 DMA. Is it going to fall further ? Lets see.

Bank Nifty weekly chart

In the above chart you can see that Bank Nifty is facing resistance around 11590 where trend line is located. Earlier this trend line was acting as support but now it will be a major resistance. 

Nifty medium term trend

Trend	DOWN
Initiation Date	26-02-13
Initiated at	5761
Low since change	5612
Reversal if closes above	5895