Nifty Reacap For The Day!!!!

I couldn’t update the blog yesterday, as there were some concerns with my comp. Guess didn’t miss much though. Let’s see how lil Miss Nifty behaved today! Well with daddy Dow down yesterday and cousin Nikkei also not in best of health this morning, our Nifty was left alone to fend for herself. The 5 minute chart on the left says it all. A gap down which was filled convincingly, but then uncertainty and volatility took over and had their toll on Nifty. We had important SEBI meet, and all sort of rumors regarding the policy decision on P Notes. For the nimble players Nifty gave two very good trades; first at the gap open “Fade the Gap trade” and second, a good convincing short once it broke the trend line and rising 20 periods MA in tandem followed by a clear sell in MACD. The hourly chart on the right is another delight from the point of view of a Technical Analyst; it has something both for the Bulls and the Bears to hold on to their views. For the bulls we have the HH and HL sequence intact, and till this is not disturbed the assumption of uptrend holds. Whereas on the other hand we have broken out of the wedge and the Bears welcome this jolly good sight (last time when we did this we went downnnnnnnn!!!) The Hourly has a triple bearish divergence MACD, corresponding to each new high Nifty has made. Presently the Price is stuck between the 20 periods and 50 periods MA’s. We need to break 4460/70 (4490 still provides some solace) to get ourselves a LL and initiate a trend change. Breaking that should take us to test our primary support of 4370 (trend line support and now also the 200 periods MA is residing there!)

Moving on to the daily chart below we can see Nifty has trend line and cradle support at 4460/70! Below that? Yes 4370 and here in the daily chart we now have the rising 20 periods MA residing there along with the trend lines to catch the falling Nifty. I personally feel till the ADX shows some strength, trading Nifty will be very frustrating for both the Bulls and the Bears. Tomorrow we have the Inflation Figures coming in the evening plus we start a long weekend, I doubt if anyone would trade aggressive and take home their position overnight. It might be a very volatile and choppy day. There are times when one should move on to trading other stocks and leave Nifty alone (it will really frustrate if it vacillates between 4450 and 4650) !!!

"Infinite money is available to a mind that is ready, willing, able, qualified and gives itself permission to earn and accept it."

Mark Victor Hansen