Weekend Views On Nifty!!!

India gets the NSG waiver; this ends three decades of nuclear isolation for us. This also opens door for almost $100 Billion worth nuclear commerce. This news is most likely to be celebrated by bulls on Monday. Uncle Dow has closed positive from being down under and all we need is some positive push from cousin Nikkei in the morning. I have been often saying that now a days Nifty is reacting to global cues and looking for fresh triggers and speaking of triggers all we have to offer now is the onset of September quarterly results. Having discussed external news, now let’s take a dekko at the charts and see what do they have to reveal?

Our first pit stop; the weekly chart, we have two interesting things going on here, first we have a DOJI and second we have closed above the falling trend line channel. Another solace for the bulls is that we have closed in the vicinity of 38.2% retracement of the recent rally. Strictly speaking a weekly close above the highs or below the lows of this DOJI would signal further direction. As of now levels to watch still remain the same; 4250 and 4650!

The daily chart below has yet again moved below the 20 period MA but comfortably above the 50 period MA. The MACD lines seem to be converging for bullish crossover, again the matter of concern is the ADX, and till the time it picks up we really won’t know the strength of the prevailing movement of the prices. Daily chart reveals the support at the following levels 4325/4300/4270 and 4250 and finally the LINE OF CONTROL 4200 where it all changes hands from bulls to the bears! Where as the road to higher grounds is paved with the following resistances 4370(don’t we know this by heart now!), 4420, 4450 and the finally 4550!

From traders point of view the levels are clearly marked for swing play; sell the resistance and buy the supports and for the positional players it’s only PATIENCE, PATIENCE and more PATIENCE!

Is being wrong really so bad? A very nice write up by my fellow blogger and a friend Ilango, please read all about it here!

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Oprah Winfrey