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Nifty close 8672 points: The Nifty opened the week slightly better but then sold off to test the crucial weekly support of 8545 (in close) before recovering all the way back up on the last day of the week, closing with a marginal loss of 11 points (-0.13%). Thus the Bulls were also able to defend the recent low of 8517 points as the Nifty rebounded from a low of 8540 points. Therefore the 8517-8540 points range is now a crucial support going ahead from a short term trend perspective. It was yet another week of see-saw trade in which the Nifty recovered off from the lows to close very near the open of the week forming yet another “hanging man” pattern in succession. This implies that support is coming in at lower levels but if a big bearish candle comes in this week then the current uptrend might be under threat. However one has to wait for confirmation instead of jumping the gun but profit booking should be the norm at higher levels. The 8757-8845 points range is the stiff resistance are to watch out for at higher levels. The battle for control has intensified as shown by the 2 consecutive “hanging man” patterns. However unless and until we get a big bearish candle and break the support area mentioned above the advantage remains with the Bulls even though they have been unable to make any headway for the last 3 weeks. From a safety angle one should keep on booking profits in rallies.

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Nifty close 8220 points: The Nifty opened the week flat but moved up to complete the 0.618 per cent retracement (8243 points) of the entire decline from 9119-6825 points before closing marginally below it. In the process it has made a small body candle implying an ebbing of the upside momentum seen in the week before. Time cycle wise we have completed the 13th week (a Fibonacci number) including the bottom of 6825 points and excluding it we are currently into the 13th week which could see a probable pause or small correction from the resistance area between 8243-8335 points. We have also completed the 8th day (also a Fibonacci number) of the rise from the recent low of 7715 points.

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