NSE India Nifty Trend Analysis -03 Dec 2012 Part -I

By | December 2, 2012

Indian Markets finally gave a 4.5% rally which we have discussed in last week analysis as per Moving Average Forecasting method. On Macro front Not much has changed with the continuing political impasse, GDP growth at three year low of 5.3 per cent for the September quarter and rupee on a downward spiral. But that’s the beauty of stock market as stock price movement is just collective emotional response of millions of traders and investor  and one can not expect rational explanation for all market moves, But technically we can justify the move in prices and forecast ahead whats on cards.

Lets discuss Nifty Trading Strategy for December Month.

 

 Nifty Hourly Chart

Nifty Hourly charts  has formed a clear negative divergence in Hourly charts, but this negative divergence is in small time frame when compared with Daily and Weekly time frame. Traders should not get carried away by this and short blindly. In Strong uptrend corrections can be limited to intraday so go with the flow till music lasts.

 

Nifty Gaps

For Nifty traders who follow gap trading there are  6  trade gaps in the range of  5077-5900.

  • 5043-5077
  • 5238-5309
  • 5303-5309
  • 5399-5415
  • 5435-5526
  • 5635-5658
  • 5666-5651
  • 5727-5736
  • 5825-5827

So these levels should be noted down carefully by Nifty trader to find further Nifty support and resistance.

 

 

 

 

Nifty Daily Chart

Finally the double bottom showed it effect from 5548 to 5585.Also trendline support at 5540 showed its true color with Nifty giving an aggressive breakout and rallying 250 points in matter of 3 days. I have said after mahurat trading Nifty tend to give 4-5% move and that to hold true and traders who have read the analysis should have made good money on long side.Now 5950-80 is the zone of resistance as shown in below charts.

As per trend line analysis Nifty is regularly taking support at rising trendline from low of 4770. Till the trendline does not get broken nifty can continue its upward journey (as we have discussed last week) ans same held true.

 

 

 

Nifty Daily Chart with Indicators

Trend line resistance has come up and unable to break 5885 NS will invite correction in Nifty. After such an stupendous rise consolidation will be the name of game for the coming week.

 

 

Moving Average forecasting method

 

As per moving average forecasting method Both 20 and 50 MA are converging at 5653 and 5654 and it always lead to a big move. So tighten you seat belts for a breakout or breakdown trade, This is what we discussed and same scenario played out.

Continue Reading for Weekly Charts and Weekly Levels

 

Let me go by Disclaimer these are my personal views and trade taken on these observation should be traded with strict Sl

We do discussion is Live market to update Nifty levels If you are interested you can LIKE the page to get Real Time Updates.

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We are Planning to conduct training session in Mumbai in batch of 8-10 persons in Last week of December, Interested people can contact me on bhandaribrahmesh@gmail.com

2 thoughts on “NSE India Nifty Trend Analysis -03 Dec 2012 Part -I

  1. DN SHUKLA

    Good Evening Sir,
    Last week your analysis that convergence of 20-50 MA gives big move prove to be correct. Hope other traders also might have benefitted like me. Thank you for sharing your analysis with us.

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