Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Indian Stock market Detailed Technical Analysis with Chart Studies

Stock-Markets / India Apr 26, 2010 - 01:12 AM GMT

By: StocksBuddy

Stock-Markets

Best Financial Markets Analysis ArticlePrevious Week: Last Week Nifty showed good strength as it held on it's own. When looking at stocks or indices everyone looks at the same chart but with different conclusions and perspectives. Everyone believes that the support/resistance levels would be different. But what eventually works out is anybody's guess. As you can see from Daily chart of nifty below, Nifty nicely tagged the Lower Bollinger Band and found solid support there.


Since touching the lower BB, nifty did NOT look back. In fact if someone bought at the lower BB, they are already up nearly 3% on just the index in less than 4 trading sessions.

Technically Speaking:

Take a look at the Daily Nifty chart below.

The above chart uses TD Demark indicators extensively.

Positives:

  1. Found Solid support at the Lower BB and never looked back
  2. MACD looks great and is moving up nicely.
  3. Almost all of the TD indicators are slowly circling back from ST (short term) oversold zones.
  4. The best of all, Nifty managed to close above center BB line.
Negatives:
  1. Unless nifty continues to move up this coming week, there is a potential of developing solid Negative Divergences on almost everything you see in the above chart. Price and Indicators alike.
  2. On the weekly charts, MACD histogram is still continuing it's downward slope and is looking to roll-over to the negative zone. Not good.

Next Week:

Nifty closed the previous week on a very strong note and owing to US markets solid close, Nifty is expected to at least open gap up on monday. What happens after that will mostly depend on how things shape up in Indian and Global markets. Unless there is a catalyst, things will probably continue to move up as they were all of the last 3 odd months sitting in the MOST overbought zone that world stock markets has witnessed in decades. The chart below is the ratio chart of Indian VIX (Volatility index) to Nifty. This chart shows the correlation between Volatility and the moves in Nifty.

The lower this chart, the higher the chances for Nifty to move up and vice-versa. This chart tells another story or rather supporting to what we just stated above in our positives. It is clearly showing positive divergence on price and indicators alike. When a stock breakouts OUT of it's trading range, it is always healthy for it to pullback to it's previous breakout levels. The same could be said of this chart too. There is literally nothing negative on this chart, at least not at this time, which would mean nifty has high chance of correction next week and subsequent weeks.

Next week could be a volatile one in the Indian equity markets owing to what is said above AND being the options expiration week. Maximum OI is at 5200. If you have already initiated a short position, trade with strict SL. Not really a good idea to go long in the coming week since there is a chance of negative divergence developing up. It is better to wait until the dust settles down and nifty clearly tells us which way it is going to go. Yes, you may loose a few points early on, but there will be lot more that you can catch with more confidence.

Have a Wonderful Trading Week ahead.

Regards

IndianStockCharts.com Team

Disclaimer: At the time of this writing, neither the authors nor our team held any positions on any securities unless otherwise explicitly stated. All information above is only for educational purposes and you are responsible for your own actions.

http://www.StocksBuddy.com

India's No.1 Trading Community From the desk of StocksBuddy.com Analysts comes the above article. SB Analyst team comprises of experts from varied fields such as Technical Analysis, Fundamental Analysis, Macro-Micro Economics, World Affairs, Currency and much more. Apart from user contributions, our analysts post analysis on StocksBuddy.com on a regular basis. For more details, please visit us @ http://www.stocksbuddy.com/blogs

© 2009 Copyright StocksBuddy - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in