Nifty Recap For The Day!!!

Yawn!!! A very boring day indeed. Just like the debate that’s going on in the parliament discussing the civilian nuclear deal with USA. Some debate…we are discussing everything under the sun other than the implication of the deal itself. No wonder after a firm opening Nifty was clueless for most part of the day looking for direction. Hmmm even the market is also finding it difficult to read the politicians. Surprisingly we had a late afternoon surge upwards and more surprisingly or rather it was a bit funny that it coincided with the parliamentary debate being adjourned for lunch!!! There isn’t much to read in today’s 5 minute chart as much of the action was frustrating and choppy for most part of the day. The hourly on the right is interestingly poised. We have the 20/50 EMA crossover on the hourly chart, such points of crossovers are important supports and resistance. Second to strengthen this up move we need to make a higher high by taking out the previous high at 4217 which lays a tad lower than the overhead 200 period EMA at 4237, which in turn is a lil bit lower than the 4250, resistance we have been talking about on the daily charts. The MACD histogram has started to turn down suggesting temporary exhaustion and indicating a pullback. On the daily chart below we can see this is the second day in succession we have closed above the 20 period EMA after what seemed like eternity. Technically when the price closes above a significant MA it goes on to target the one above in this case the 50 period EMA at 4475. This might sound good to bulls but they should keep in mind that the roadblocks ahead are 4250/4325. While on the down side any breach of 4050/4000/3980 will trigger a retest of lows or perhaps start a new wave down. Just a passing remark, today we still had more declines than advances plus we made about 59 new 52 week lows. To conclude I would still suggest to trade the day after rather than get caught on the wrong side tomorrow. Remember politicians have come and gone, the governments come and go but the market moves on…..so no hurry!