Nifty after 3 weeks of downfall which was overshadowed by scams and technical correction. I anticipated a bounce back in coming week in last week Nifty Technical Analysis [Click on Link to Read about it] .
As anticipated nifty gave a good bounce back close to 4% on weekly basis,on the news Indian economy growing at a robust 8.9% YoY growth in Q2 September 2010.
Nifty Daily Chart
Technically, last few day’s chart of Nifty is showing symmetrical triangle pattern which is bearish breakout pattern if lower trend line breaks. Price is near to lower trend and expecting it to move with in triangle till the time it does not break upper or lower trend line.
Resistance is at 20 DMA@6030,50 DMA@6045 if these 2 levels are corssed than we can head towards 6091 levels which is 50% retacement of the fall from 6322-5680.On downside Support is at 5970 break of that will see 5915,5860 levels.
RSI is currently trading below 50 levels and only a move above 50 can be justified as market moving higher as it has been observed RSI if not able to cross 50 can lead to more correction in market.
MACD is likely to show positive crossover.
Nifty Trading System[Click on Link to learn more about it]
Please click on the link to know more about Nifty Trading System.
Three Black Crow Candlestick formation [Click on Link to Read about it]
Nifty Weekly chart is displaying Three Black Crow Candlestick formation and it is again bearish in nature.
Nifty Weekly Range:5822-6100
Nifty Weekly Pivot:5926
The next major trigger for the domestic markets going forward is the advance tax payment of corporates for the third installment, which falls due on 15 December 2010. The advance tax figures will provide a cue on Q3 December 2010 corporate earnings.