NIFTY WEEKLY UPDATE (16-Jan-2012)

NIFTY

Hi Friends,

I'm a Financial Analyst by Profession and passionate about Technical Analysis and Trading.

I'm learning and practicing Technical Analysis since last 1 year and active in in market since last 2 years.

This is my first blog about the Nifty.....


There is lot of negative news Globally and some positive news Domestically.

But it would be unfair to keep bearish bias bcoz of the events lined up Globally & Domestically.

While most of the news has been already factored in there is something behind the scene.

So stick to the principal of Technical Analysis one must see what chart tells you and don't try to find things what you want .

Well on one hand Nifty and most of the stocks have given breakout of the short term pattern which is Bullish sign, on the other hand there is Negative Divergence on RSI on Nifty, most of the Stocks & Indices.

But till the time we don't get confirmation its not a trade to go Short.

Short term trend still remains Bullish. And trend will turn Bearish only on break below 4790.

So for the time being Nifty will play Tennis Match between Bulls & Bears within the range of 4800-4900 (like it did around 4700-4800) and will be in love with 4850-4860 for few days. It will give clear direction only on breakout on either side.

If it breaks above 4900 it can go to 4990-5060 and even 5170 as per my alternate count. ( isn't it shocking)

And if it breaks below 4790 then 4690-4590-4425.

For the time being upside seems more likely.

So what we have to do..

Nothing but enjoy the Match between Bulls & Bears and spend some time on Analysis. Its not necessary to trade every day and every move.

4800-4900 is non trending range and please don't take new positions within this range.

Looking at the short term momentum buying near 4820-4830 is preferred only on down open.. But don't short on upside.

Those who are Long stay Long with sl of 4790-4800.. And who are short keep sl of 4900.

Don't take new positions within the range of 4800-4900 and just enjoy the Match.


Happy Minting,

Thanks & Regards,

Harsh Dixit.