Sunday, May 8, 2016

Weekend Views On Nifty !

Friday saw a very subdued movement in the Nifty, with weak Asian cues and none positives coming in from the West, our Index held out on its own. With negative headwinds from China and weak rest of the markets Nifty was kinda strongest Index performing!!!

Posted below is the Daily chart and some insights from it are;

1. The long term trend still down.
2. The intermediate trend (is up) marked in Red and Blue arrows signifies HL and HH still in play.
3. The last candle sort of hammer, where the bulls took charge right back after testing the 50 EMA (the yellow line).
4. Price is precariously positioned between the confluence of 20/200 EMA and 50 EMA.
5. The confluence of 20/200 at approx 7770-75 is also incidentaly the 20 EMA on the monthly chart.


Monday might see a flat to slight gap up opening if all bodes well. On the daily chart there is almost a 100 point range between the overhead resistance and support below and a decisive break of this range with conviction will set the tone for future movement/direction of Nifty.

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