Friday, March 20, 2009

Nifty's weekly TA gives a buy signal..

With today's price action, the weekly has entered a "buy mode"..by closing above 5 wk.avg/ema and 2 wk swing reversal up. It could be a false one. Watch the follow up price action..
There is another parallel channel in hourly, which could target 2865 in case of Nifty trading above 2815 on Monday.
Till that happens, the earlier view stands..A "D" leg completed at 2836 and an "E" leg down has commenced. A move below 2770(2-Day Swing reversal) & then 2737 will speed up things.

Nifty at Cross roads here..Should be resolved in the coming days."OB" readings are getting resolved with intra dips till afternoon and bullishness returning post 2.00PM.

As the move so far looks like an impulsive kind and few big stocks having cleared their earlier highs corresponding to Nifty's 2970(ONGC, SAIL, etc), the 5th wave down could be treated as a triangle having ended at 2539. Further price moves would confirm such a scenario.






2 comments:

Sujatha said...

Thank u for your early updation and running explanation. Personally do you think that mkt may shoot up more upto 2900 lvls?, since the 2day RSI is high it seems...now everybody is talking about 3000 lvls... still there is no major sell off...

if the 5th wave down ended at 2539, so the current price action is showing with volumes sir? don't understand... r the retailers entered...

Even increase in 2700 and 2800 puts are high.. is it showing bullishness?

Anyway n both the ways nifty is giving opportunity to play... just doing intraday only... again one short is open ....

Ilango said...

Hi..Sujatha,

As I said in my earlier post, Nifty stays adamant at the top & bottom., tests our patience in spite of external cues. At the bottom too, it didn't start moving up immediately in spite of strong +ve world cues. Presently, in spite of high "OB" in daily with -ve div in hourly and weak world mkts, Nifty waits for the weak stocks to do the catching up before confirming a reversal..The range of that break out is clear...2770 to 2815.

Markets, however, can surprise us and that is the reason for having the alternate view.

Heart is still feeling the "fall" view.

Read how much ever you like but have your own views when you enter the market.You will do well.

Best regards.

ilango

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