WEEKLY TECHNICAL ANALYSIS FOR NIFTY:

WEEKLY TECHNICAL ANALYSIS FOR NIFTY:

Nifty is in Overbought position again on weekly Charts But the most Important thing is that 50 Day Simple Moving average crossed 200 Day Simple Moving average, Now it moving further upward direction. This crossover is happen in 2003 when the previous Bull Market started and continued for next 5 years till 2008. So one should hope for good days are ahead.

Weekly Stochastic is in the upper Over-bought zone, but as was the case of last year during the months of April 2009 to June 2009 & again from August 2009 till October 2009 slow Stochastic continued to remain in the upper zone giving mega bull move to the markets. Similarly weekly W%R has entered the upper zone & is likely to remain in the upper zone for many more weeks as was during April to June and August to October 2009. These are extremely bullish indications for next few weeks.
Trend Indicator the Weekly ADX has flat with positive DMI at 26 and negative DMI at 18. Weekly MACD is about to generate a bullish indication as signal line is about to cross MACD line upwards both being above the neutral line.

1. Nifty Resistance – 5307 – 5311 – 5345 – 5362 - 5395
2. Nifty Supports – 5262 – 5245 – 5205 – 5180 - 5160

DAILY TECHNICAL ANALYSIS FOR NIFTY:

The Daily Indicator somehow weak compare to Weekly Indicators, slow Stochastic going downwards from high of 85 now %K and %D both line falling, now %K at 47 and %D at 59. Daily RSI at 66 is giving a bullish signal as it is moving at upper zone. Daily ADX both positive DMI and Negative DMI moved to kiss each others. MACD is about to generate a bearish signal indication as signal line is about to cross MACD line downwards both being above the neutral line.

As far as nifty not breach 5187 till one should stand Bullish in Markets

NOW NIFTY,
iF YOU SEE MONTH BY MONTH THEN LAST 2 MONTHS (FEB & MARCH) WAS MEGHA BULLISH.. IN FEBRUARY NIFTY LOW WAS AT 4675 AND CLOSING WAS AT 4922 WHERE MARCH MONTH LOW WAS 4935 AND CLOSING WAS 5249. ITS A GAIN OF 247 POINTS IN FEBRUARY AND 327 POINTS GAIN IN MARCH.

YOU CAN ALSO NOTICE THAT IN MARCH NIFTY NOT BREACHES FEB MONTH CLOSING, SO ITS A MEGA BULLISH MONTH FROM STARTING.


NIFTY ALREADY FORMED FALLING WEDGES ON CHARTS. SO TAKE OPPORTUNITY OF THIS...

MANY - MANY SHARE ALSO BREACHES THE MAJOR SUPPORTS... WE TRY TO GIVE THOSE SHARE SHORT CALL IN OUR TODAY'S CALLS.

Stocks to open higher on Monday morning

Stocks on D-Street are likely to open higher following positive global cues and better than expected unemployment data from the U.S. We expect the benchmark index or the sensex to gain more than 0.5 percent or neary 85 points for the day

Gains in IT and Consumer Durables stocks helped the benchmark cover decent ground on Thursday. It is worth noting that the attention has suddenly shifted to Smallcap and Midcap stocks with the Midcap and Smallcap stocks gaining 0.9 and 2.4 percent respectively.

We strongly believe that there will be a huge rally in speculative stocks this week, as the complacency factor in the market is too high and this has encouraged speculators to get back in to the market. Traders might have a good time minting money if they are willing to take risk and can bet some money in second and third rung stocks. The key is to get out of these scrips after 10 to 20 percent gains and not be greedy and get stuck for life.

Some of the Midcaps that showed significant strength were BAG Films (mentioned in our Wednesday's review), Man Aluminum, Mudra Life, Vakrangee Software and Jayswal Neco. We like the Jayswal Neco and Vakrangee from a trading perspective, as we see a fresh break out from the current levels. Investors who would like to play it safe could bet on HEG, Unitech and DB Corp, form a short term perspective