Monday, January 12, 2009

Nifty Recap For The Day!!!

Nope I wasn’t stuck in Satyam! Neither was I delving deeper into the causes and effects of this sordid affair, which has left many a souls poor and more importantly cheated and violated. I was busy with my primary business, as these winter months are important for me, it’s my season time! Secondly my full time maid has left us after almost 5 years, so I am a lil busy with kid and helping my wife around (both of us are working parents). Third if any one is from DELHI, he will realize what a nightmare it is to get your child admitted into nursery. Yeah it sucks…so far I have filled in 25 applications and done 8 interviews, still waiting for that elusive admission letter Anyways won’t bore you guys with my problems, its back to analysis again, I might be lil rusty. You know, it will take a day or two to get back into the groove again.


Last week when everybody thought we were getting a reversal of sorts, the SATYAM fiasco gave the much needed opportunity to the Bears to strike back with full force. Life above 50 EMA (not drawn in my chart below) doesn’t suit Nifty I suppose. The Nifty chart below shows the 20 periods SMA (green) is above the 50 periods SMA (blue), 20 needs to have a bearish crossover with 50 to signal real weakness. Supports? I believe none exist…its just that they are points where Nifty takes a breather before continuing the journey! Still one mustn’t be so pessimist, therefore we shall presume 2750 and 2700 to hold fort. Remember the famous line “Innocent till proven Guilty”! Resistances? Hmmm here there is no confusion, for starters how about 2815/2880 and 2920?






The Hourly below shows that we are a bit oversold so a technical bounce is not ruled out, the DT shown on the hourly looks more sinister(yeah its there on the daily but on the hourly the effect is more scary)! The price is too far stretched from the MA’s overhead, so an alignment of sorts is in the offing. Its not that the Price will snap back towards the MA, sometimes it just meanders sideways to enable the MA to come down to a strikeable distance!






"Get busy living or get busy dying." Stephen King



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