Nifty Technical View

By | September 28, 2009

Hi All,

Seasons Greetings to all Blog Reader

The Week gone by was an expiry week and Nifty ended up the week at just 0.33% up.In absolute terms we have outperformed our peers where all Asian markets were down between 1-3% we were up by 0.33%.Till how long this out performance can continue?

China’s Market is in a downtrend and if one remember Aug 07 china went into downtrend and we follow up in jan.The rally which we are witnessing is a Liquidity driven rally which if starts cooling off the sell off will be quiet ferocious.
We need a correction for a healthy market.

Technically speaking as per my analysis the upside is quiet minimum at max if 5016 is crossed we may see 5150 5300 levels.Down side risk remains and is quiet substantial.

From the Daily Charts which are attached above We have close below 5EMA last friday 4964 but such whip saws can be ignored.

For the coming Trading Session Levels are as follows:
Pivot Levels:4964
Resistance:4991 5024 5055
Support:4929 4898 4865

Weekly Pivot:4966

Weekly Resistance:5029 5099

Weekly Support:4897 4834

An important observation to ponder upon:
Inspite of a huge FII in flow of almost 9800 Cr in just 7 trading days (even if a good part of is taken as bulk deals / private placement, even then the remaining can only be sizable) the effect on nifty is just an abysmal 184 pts – most of it on ‘gap up’ openings.

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