Technical update on Nifty

Nifty daily chart

One important observation in daily chart of Nifty is that RSI is showing bearish divergence. Index has gone up but RSI has formed a lower top which indicates that bulls are tired. In best case scenario it might touch 6300 but in short term there is no possibility of breaking this level.

Technical update on Nifty and Bank Nifty

Nifty weekly chart

 

In the last week Nifty has completed 100 % retracement and managed to close above previous high 6100. Momentum is strong and companies like LT, SBI , PNB, HDFC Bank , Axis Bank and even IT sector is also doing well. The possibility of reaching 6300 is very high.

Bank Nifty weekly chart

Bank Nifty has reached previous high that is 13300 which was made in the year 2010. Suppose it breaks this level it can reach 13500.

One important observation in both Nifty and Bank Nifty charts is that RSI is not over bought. Does this mean that market has strength to create new high?? Lets see.

Nifty medium term trend

 

Trend	UP
Initiation Date	18-04-13
Initiated at	5783
High since change	6199

 

Thought for the day

A good friend is a connection to life a tie to the past, a road to the future, the key to sanity in a totally insane world

Technical updates on Axis Bank , LT and SBI

 

Axis Bank

Axis Bank has breached previous peak at Rs.1515 and closed at Rs.1530. Even at Rs.1530 RSI is not over bought so there are possibilities of further rally.

LT

LT has reached a major resistance line at Rs.1600 (observe green line) If LT closes above this line then once again long position can be considered.

 SBI

SBI has closed above diagonal trend line resistance. Further rally is possible as long as it is above Rs.2390.

Technical updates on Nifty and Tata Motors

Nifty

Nifty has made a spectacular rally . A rally which was not imagined. It has breached previous peak 6100 and closed at 6146. Short term trend reversal will be closing below 6030.

Tata Motors

Tata Motors has once again reached resistance at Rs.310. Breakout from Rs.310 might take Tata Motors to Rs.336 in short term. RSI is showing divergence.

Nifty medium term trend

Trend	UP
Initiation Date	18-04-13
Initiated at	5783
High since change	6157
Reversal if closes below	5870

Thought for the day

All tyranny needs to gain a foothold is for people of good conscience to remain silent.

Technical update on Rel Cap and Nickel

Reliance Capital

In today's trading session Reliance Capital was one of the losers. It has closed below 20 DMA which indicates beginning of down trend. Trend is likely to be down as long as it is below Rs.381.

Nickel

In recent times Nickel has rallied from Rs.795 to Rs.850. In the above chart you can observe that Rs.850 was acting as support and now it is the resistance. Continuation of uptrend cannot be expected unless Nickel breaks Rs.850

Nifty medium term trend

Trend	UP
Initiation Date	18-04-13
Initiated at	5783
High since change	6114
Reversal if closes below	5870

Thought for the day

The one unchangeable certainty is that nothing is unchangeable or certain.