WEEKLY ITECHNICAL ANALYSIS FOR NIFTY:
WEEKLY STOCHASTIC RISING UP. SIMILARLY WEEKLY W%R HAS BOUNCED UP FROM JUST SHORT OF THE LOWER ZONE AND CROSSED THE NEUTRAL LEVEL. THESE ARE EXTREMELY BULLISH INDICATIONS. MORE IMPORTANTLY THESE INDICATORS HAVE GENERATED HIDDEN DIVERGENCES WITH NIFTY MAKING HIGHER LOWS FROM JULY 09 TILL MARCH 2010 WHERE AS THE INDICATORS MAKING LOWER LOWS, CLEARLY DEPICTING CONTINUANCE OF THE UP TREND INDICATED BY NIFTY. WEEKLY RSI IS GRADUALLY INCHING UP & NOW ABOVE 56 AT 62 AFTER GENERATING
SIMILAR HIDDEN DIVERGENCE. TREND INDICATOR THE WEEKLY ADX HAS GENERATED STRONG BULLISH SIGNALS WITH POSTIVE DMI AT 25 ABOVE BOTH ADX AT 22 & NEGATIVE DMI AT 19. WITH BOTH ADX AS WELL AS POSITIVEVE DMI TURNING UPWARDS AT THESE LEVELS, CLEARLY INDICATES A LONG TERM UP MOVE OF MANY MORE WEEKS.
IN CONCLUSION: NIFTY RUN IN LINE WITH INTERNATIONAL MARKET, ALL WORLDS IS SUPER OVER BOUGHT POSITION AND NOW NEED TO SEE WHAT INTERNATIONAL BASED OPERATOR HOW PLAY THEIR CARDS. IF A CORRECTION COMES THEN ITS HEALTHY FOR MARKETS, AS NIFTY IS EXTREEMLY OVERBOUGHT IN DAILY CHARTS. WE ADVICE THAT STAY AWAY FROM ANY FRESH BUYING AND DON’T SEE GLOOMY PICTURE –!!
1. NIFTY RESISTANCE – 5307 – 5311 – 5345 – 5362 - 5395
2. NIFTY SUPPORT – 5262 – 5245 – 5205 – 5180 - 5160
Investors in Dalal Street are growing impatient with the growing uncertainty in the predicting the direction of the indices.Expect the benchmark index or the Sensex to trade in a band of 50 to 80 points, as it has been the case for the past month or so.
Auto and Banking stocks led the gainers list on Friday, as there was some fund buying in select counters to prop up the fund NAV's.Tata Motors, M&M and ICICI Bank were among the select gainers among the largecap stocks. Midcap stocks like Valecha Eng, Finolex Ind, Murli Ind and Aegis Logistics were among the major gainers. We Himdari Chemicals. in which Bain Capital has taken a significant stake few months ago has seen a good beark out and has gained by 15 percent to Rs 483.00. We expect the stock to double in the next 12 months.
We advice investors to have minimum exposure to the markets at the current levels. All indicators point to heated market at the current levels. It is a good idea to trim your holdings, if you are heavily invested in the markets. Traders who could take some risk could take short term positions in Jayshree Tea, Sabero organics and Micro Technologies