Niifty and M&M

No Signs of Recovery !?

Today  Nifty has closed at 5036 which is a new low. In earlier trading sessions, even though Nifty was below 5000 it managed to close at 5073. Closing at 5036 may indicate that bears are dominating the market. Momentum indicators like MACD, Stochastics and trend indicator Parabolic SAR are -ve and there is no signs of a pullback in the market. Those who bought call option based on the intuition(but not on evidence) will be under great loss. Buy Nifty only if it closes above 5200. Closing below 5490 will bring the market to 4800.

Nifty Intraday Levels : Buy above 5086 tgt 5105-5158

                                  Sell  below 4986 tgt 4967-4914

(Above mentioned are spot levels)

M&M

M&M has reached very important resistance level. The importance of this falling trend line is high as it is formed from November 2010 and M&M has tested this trend line many times but failed to breach it. Stochastics has reached overbought level and bearish engulfing pattern of candlestick shows that one can short M&M at current level for a target of Rs.720 keeping a stoploss above Rs.748.

Nifty Daily Chart

Nifty Daily Chart

As expected nifty is consolidating . It may continue consolidating for few trading sessions. However stochastics on daily chart has given early signs of recovery and MACD Histogram is forming a flat structure. At this point of time I can only say that the free fall which we have noticed from few days is temporarily arrested.

Nifty Intraday Call :

Buy Nifty above 5168 target 5180-5200-5220

Sell Nifty below 5109 target 5098-5070-5050

(above mentioned levels are spot prices. Buy/Sell after 10-15 mins of market opening)

Disclaimer: Above mentioned calls are based on my understanding about technical analysis. Please do your own due diligence before taking them.

Nifty and BPCL

Nifty Daily Chart

Today Nifty made a high of 5198 and failed to cross 5200 which can act as immediate resistance. Apparently the expected relief rally seems to be completed today.

Market is expected to be range bound at least for few days and so the Nifty may test 5000 levels once again.Short term traders should avoid taking long position until nifty closes above 5200-5250 and use every uptrend to create short position.

Intraday Levels : Buy only above 5212 target 5236-5260

                          Sell only  below 5107 target 5086-5029

(Above mentioned levels are spot levels. Buy/sell after 10-15 mins of market opening)

BPCL

So far BPCL was extreamly bullish. But now indicators like RSI and Stochastics are showing early signs of weakness. In the chart you can see an ascending trend line which can act as immediate support and the next support is at Rs.650. Sell BPCL around Rs.685-690for a target of Rs.670-665-650 stop loss closing above Rs.710 (1 week)

Nifty Technical View

Nifty Weekly Chart

Nifty is trading below key support level and also below trend line. For very short term 5000 may act as a support and market may give a relief rally till 5150-5200. If market closes below 5000-4950 we may see levels of 4800 which is 50% retracement of the rally from the bottoms of 2008. Investors can start buying blue chip companies. Starting SIP in large cap funds is also advisable.

Nifty daily chart

Stochastics in Nifty daily chart shows that nifty is oversold. However moving average is still negative. As per my observation any trend(up or down) will be followed by consolidation. So I am expecting Nifty to consolidate between 5000-5200 for few days before taking any direction.

Intraday Traders can Buy Nifty only above 5164 for a target of 5202

Sell Nifty below 4982 for a target of 4944

(Don't trade in first 15 mins)

Disclaimer: Above mentioned calls are based on my understanding about technical analysis. Please do your own due diligence before taking them.

Nifty and Bharti

NIFTY WEEKLY CHART

Yesterday Nifty has closed below 5200 level which indicates that bulls are dominated by bears. Nifty closed at 5118 and now the earlier support 5200 will act as strong resistance.

One more interesting observation is 50 DMA has turned red and it is dropping. In the above pic you can see that it gave a buy indication around 4000 and now it is showing sell indication. Now the question is ' Is this the beginning of a downtrend?' .

It would be too early to comment , but I can only say use every upside rally to exit long and initiate short positions.

Bharti

Currently Bharti is in short term downtrend but it has taken support at the above shown trend line. Wait for closing below trend line that is below Rs.396 and take short position for a target of Rs.380-370 stop loss closing above Rs.396.

 

Disclaimer: Above mentioned calls are based on my understanding about technical analysis. Please do your own due diligence before taking them.