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

Technical updates on Bank Nifty and SBI

Bank Nifty daily chart

Bank Nifty has sustained above 200 DMA for two consecutive trading sessions. Medium term uptrend has just started in Bank Nifty. It is likely to move towards 11900.

SBI

SBI has bounced back from support at Rs.2050. Potential target is Rs. 2200.

We have continued to hold long in Nifty fut initiated at Rs.5716 and today we have initiated bull call spread in LT. 

Nifty medium term trend

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

 

Thought for the day

I  thoroughly believe that no power in universe can with hold anyone from anything they deserve - Swami Vivekananda

Technical updates on LT

LT daily chart

Trend indicators in daily chart has indicated uptrend in LT. Trend will remain up as long as it is above Rs.1350. In the above chart you can see that LT is forming lower top lower bottom formation which is medium term bearish structure. If it closes above Rs.1485 then medium up trend will start. Till then these bounce back will not last too long.

Nifty medium term trend

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

Thought for the day

A tremendous stream is flowing toward the ocean, carrying us all along with it; and though like straws and scraps of paper we may at times float aimlessly about, in the long run we are sure to join the Ocean of Life and Bliss. - Swami Vivekananda

Technical updates on Nifty and Bank Nifty

Nifty daily chart

Nifty has bounced back from multiple support level around 5600. It is supported by 200 DMA as well as descending trend line. There are greater possibility that it will move towards 5850. Closing below 200 DMA will be the stop loss.

Bank Nifty daily chart

200 DMA of Bank Nifty is around 11390. If Bank Nifty closes above this level more upside is possible. Expected target once it closes above 11390 will be 11900.

Traders should note that RSI of both Nifty and Bank Nifty is indicating bullish divergence. Possibility of pull back is very high.

Nifty medium term trend

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

Thought for the day

This I have seen in life—those who are overcautious about themselves fall into dangers at every step; those who are afraid of losing honor and respect, get only disgrace; and those who are always afraid of loss, always lose - Swami Vivekananda