Nifty heading into resistance zone with short term near "OB"

Look for a possible negative divergences developing in the intra charts as the upmove progresses past 2740, to book out of longs and for a possible "short" trade.

Charts are self explanatory. Daily trend is firmly up. Weekly continues to be down. The hourly is at the "Overbought" region but without any negative divergences.

Volumes have been high with price rises in many stocks.

For Monday:
Resistances: R1 @ 2742, 20DMA @ 2739, 5 wk. Ema @ 2737 & 5wk avg @ 2758.
For supports:- Pivot @ 2704, S1 @ 2682, 5Day High ema @ 2674 & 10 DMA @ 2660.

Have a great weekend....

Nifty's near term range narrows to 2543 - 2646.

Though Nifty managed to stay above the R1.2596 and even scaled R2.2620, it gave away all its gains when it neared the 5 day high ema at 2648 after developing negative divergences in the 5-minute chart. Thus, the day's action was in line with the larger bearish trend. An attempt was made by the bulls but could not keep the momentum. Safe longs above 2630 only.

For tomorrow, trading below 2596 may lead to 2575., below which it may fall rapidly.

Nifty- A likely map for March..

I have been maintaining the fractals within the triangle since 3147. A bit of a stretch happened in the "C" leg due to overseas weakness. Now with strong positive cues, we should head into the "D" wave (Aided by the oversold daily & the +ve div.of hourly).

Markets always stretches you by a day or two but eventually market action will turn in your favour if you persists.

Let us see whether the fractals will repeat the "B" in this "D" leg. Make your trading adjustments, if the path chosen by the markets is different from your expectations.

Today's Pivot is at 2576 with R1-2596 and R2 2620.

Trading above R2 will indicate change of momentum in the short term provided Nifty stays above the R1 @ 2596. Closing above 2616 will change the daily into a buy mode.

Bad Europe, in line US, hesitant Asia.

Europe led the last leg of the worldwide fall, making new lows.

Dow Jones(US ), being the root cause of it all, toed the Europe and fell along.

S&P.500, the broader US Index, shows a bit reluctance.

Hang seng, Asian Index, not a bit happy about it, nonetheless falls but not making new lows.

Nifty, Indian Index, behaves similar to Asian counterparts.

Stocks position in this downtrend.."abc" or "1,2,3,4,5."

Nifty, in the short term, highly OverSold with positive divergences. Ripe for a rally, provided the mentioned levels are scaled. Subsequent to this rally, one more fall is expected and that could be a truncated one. Trade these channels. They are quite rewarding.

These hourly charts for trading purposes only. Daily charts will be posted later for investments.
BajajHindustan with +ve div. Stock is pressed down because of Govt. policies prior to elections.

Cairn, outperforming during this last downtrend, has shown its tendency to seek higher levels. It is a proxy to Crude Oil.

Essar Oil, a punter's favourite, broke out of the channel and likely to seek higher levels.

GMR Infra, an outperformer having bottomed out in Jan.09, is consolidating. An Infrastructure play, not affected by global meltdown as it caters more to Indian Infra projects.

Hindalco, an Aluminium commodity play, is at the bottom of that commodity cycle and showing short term +ve div.

India Cement, another outperformer from the cement sector, having a narrow range to break out.

ITC, flattered to deceive with its recent moves. However, at lower levels with OS readings will offer some trading movements.

NTPC, one of the rare stocks that is trading at 60% above its Oct.08 lows, has sound fundamentals and a Power play including a possible nuclear one.

Reliance Capital, a very high beta stock, fallen heavily in this downtrend. When the tide changes will offer a quick return.

RCVL, part of Anil Ambani group & a Telecom play, provides for a high beta trade.

Reliance, a stock that can mar or make Index levels, is trending down in the channel with mild +ve div.


RNRL, another Ambani stock, quite OS with mild +ve div.
SAIL, a metal play, broke out of the channel after OS & +ve div and consolidating. It leads the index movements quite often.


Suzlon, wind energy leader, has fallen from 450 to 35, showing fatigue at the bottom.
SBI, PSU bank leader, fallen out with the mkt favour, leading this leg of the downtrend is full of shorts. Keep an eye on it when the mkt ultimately bottoms for that short covering rally.

Satyam Computer, having fallen from grace is in the middle of a search for a new owner, breaking out after +ve div. A stock for trading. Investment considerations after the new owner is in..

Tata Steel, another metal play, showing +ve div at the OS levels.

Zee, another punter's favourite, showing some +ve div.

Happy trading and all the best.

Nifty at the lower levels with "OS" & +ve div..

Nifty gapped down at the Pivot(2596) and traded towards the S1(2564) and broke it briefly and stayed down leaving it to the world mkts to resolve the direction with 2 days holidays ahead. Those holding shorts are in the direction of the trend and will get lower levels even if there is a rally for few days.
Over Sold Nifty with +ve divergences in the hourly charts may give some bounces/rallies. Trade with the Pivot(2576) & S1(2553) & R1(2596) for Thursday.