Skip to main content

Technicall View on Nifty

The Nifty which opened with a positive bias failed to hold on to the momentum as bears took control of D-Street as it reclaimed 10,200 levels. The index slipped below its crucial 200-DEMA placed around 10,114 and now a closed below 10,000 could take Nifty towards 9700.

Bears ruled the D-Street for the third consecutive day in a row and pushed the Nifty below its crucial long-term moving an average of 200-DEMA for the first time on Monday for the first time since November 2016. The Nifty has also registered its fresh low for the year 2018 as it made a strong bear candle.
The Nifty which opened with a positive bias failed to hold on to the momentum as bears took control of D-Street as it reclaimed 10,200 levels. The index slipped below its crucial 200-DEMA placed around 10,114 and now a closed below 10,000 could take Nifty towards 9700.
Traders should not hurry in creating long at the current juncture as long as Nifty trades below its 200-DEMA. A close above 10,200 could signal some short-term strength in the index.
The Nifty which opened at 10,215 rose to an intraday high of 10,224 before bears took control of D-Street. The index hit an intraday low of 10,075 before closing the day at 10,094, down 100.90 points or 0.99 percent.
Mohammad further added that 10040 – 9980 appears to be a critical support point for Nifty50 from where a bounce can be expected. For any reason, if indices close below the psychologically important mark of 10,000 then traders should look for bigger targets of 9700 on the downside.
Meanwhile, a close above 10200 levels may suggest some short-term strength to the indices.
Options band signifies a lower trading range between 10000 to 10250 zones. The index formed a Bearish candle on the daily chart and has been making lower highs - lower lows from last three trading session,” Chandan Taparia, Derivatives, and Technical Analyst at Motilal Oswal Securities told Moneycontrol.
“It has broken its crucial rising support trend line which was formed by connecting major swing lows of 9341, 9448,9687 and 10141. It slipped below its 200 DEMA which implies short-term pressure in the market,” he said.


Comments

Post a Comment

Popular posts from this blog

Wizard of Dalal Street: Govind Parikh's investment mantra

Wizard of Dalal Street: Govind Parikh's investment mantra Govind Parikh of Govind Parikh Securities says selling right is more important than correct buying. He says it is necessary to keep a lot of cash. "We keep an average 10 percent cash in our portfolio," he says I like to buy things in a bad market. Additionally, don't look current cash flow, concentrate on future cash flows — that is what  I look at," says Govind Parikh of Govind Parikh Securities. He advises investors to buy good quality stocks when the market crashes. While sharing his investment philosophy with ace investor Ramesh Damani, on the Wizards of Dalal Street, Parikh says management integrity is very important when deciding which stock to bet on. He tells investors not to buy stocks impulsively. According to him, selling right is more important than correct buying. He says it is necessary to keep a lot of cash. "We keep an average 10 percent cash in our portfolio," he says. He al...
2 comments
Read more
LIC IPO Shorts  The largest market capitalization in the making. The govt selling 5 percent stake...... The cuttoff price 2100 Listing price 3000 or more shall be included in the nifty Pro Large base of policies Large Market Share Cons Decling market share viz viz private companies higher cost insurance policies Bottom line can apply for LIC IPO for listing gains..... For More do have a look at the Link Below https://www.youtube.com/watch?v=VPGp5V1ecDM  
Post a Comment
Read more
  NASDAQ's Crack Will Rattle Global Equities During the week, the confidence of the bulls got shattered when tech-focused US companies crashed rattling the entire financial markets. Nasdaq's crash does not look like a normal correction but seems like a bigger downward spiral unfolding after valuations sky-rocketed. Given that US elections are only 52 days away, it seems unlikely that US markets will make fresh highs again and there is every likelihood that selling pressure may continue even in broader markets. Crude oil too has given up most of its gains and prices are below USD 40 per barrel on expectations of lower demand going ahead which suggests that global recovery might take longer than earlier anticipated. In contrast surprisingly, gold's move is not hinting at any major crash in the financial markets, given that gold prices consolidated and remained steady even when Nasdaq plummeted. One of the important ways to analyze the psyche of an investor is by measuring mut...
Post a Comment
Read more