January 31, 2014

Detailed weekly NIFTY update

On daily charts, nifty is bouncing off the week's low but there is no evidence of any strong buying happening today. Clearly no one wants to take aggressive long positions.

Trading below 6130 will mean prolonged weakness.

Option writing points to support at 6000.




On line charts, we have closed below recent swing lows thus indicating increased bearishness.


This chart is for those who like moving averages. Markets are now below 50 DMA and 6200 may offer resistance.


The RSI chart shows break of support...


On weekly charts, nifty has broken down and closed below 6130... this level provided support for few weeks. We also have an expanding triangle which is bearish... pattern implication calls for correction to 5200.


MOnthly charts show a weak uptrend with strong resistance at 6300-6400 levels. Close below 5700 will be bearish.



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