iCharts Discussions

[saurabhkurichh]

Nifty on a losing streak

[amitagg]

[vinay28]

This is just a personal view and neither a recommendation nor a tip nor an advice for any trade.

Nifty for Monday (23/03/14) and beyond

Supports are at about 8555, 8539, 8509 and 8464 while resistances are at about 8584, 8601, 8615, 8659, 8700, 8724, 8747 and 8772. Six +WWs can give about 8624 (if above 8563), 8643 (once above 8603), 8746/8814 (once above 8589), 8800 (once above 8606) and 8934 (if above 8571) (+WWs with higher targets are not mentioned as of now). Two -WWs can give about 8462/8360 (-WWs with lower targets are not mentioned as of now). BO/BD of a ST can give 9150/8400 and a HnS can give about 8435 if nifty breaks and remains below 8585.

Nifty fell again and closed below 8600 and looks ominous. However, the +ve div on lower TF and the bullish div is persistent and we may see a reversal soon. A close below about 8526 can cause more fall while a close above 8776 can take it up further. However, only a close above 8938 may give hopes for a rally. Till then, it remains a "sell on rise" nifty. Global and local eco-political events can have a bearing on how nifty moves in short term. Trade carefully as March is normally a month to book for income tax and NAV purposes.

[saurabhkurichh]

yes amit, isn't it kind of strange. FII DII buying and still nifty falling . on top of that , some good news coming in from all corners

[rameshraja]

Hello Saurabh

Market cannot continue to moveup on good feel factor / news.. Economy has to pickup and fundamentals should show change for market to advance further..Nifty trading around 24 PE is highly overvalued and historically its proved when market was around these levels, correction took place excepting on two occasions.

Its time to check Reality !!

[amitagg]

Interestingly as per one historical study when Nifty PE is 22-24 as today, 3 yr return is negative 15 percent. Hence not a time for investment per se. Also given as posted in Icharts breadth charts, ((index breadth chart on left) Jan-March AD line is continously falling while nifty has made high above 9000.

Probably the shakeout down in spiral shall come when fund selling comes in main some large caps. It seems monthly mutual fund investments are recording an increase and hence time for caution

[vinay28]

Source unknown.

Market has been falling in view of what experts call a poor earnings forecast. However, it appears from the two charts below that India Inc's performance may actually surprise on the +ve side.

[riteshucha]

buy with a very tight SL of 8559... tgt 8615 / 8645

[vinay28]

gap at 8565 filled. next gap at 8277NS.

[riteshucha]

will buy NF only once 8608 is crossed...
or look to sell below 8569... till then wait and watch...

however, looking to buy BNF, with days stop... BNF & Spot both open low same....once spot low broken, would look to sell...

[saurabhkurichh]

thanks vinay and RR sir

[riteshucha]

might again make a small intra rally on the upside today tgt 8599 - 8605
SL 8533...

[vinay28]

This is just a personal view and neither a recommendation nor a tip nor an advice for any trade.

Nifty for Thursday (26/03/14) and beyond

Supports are at about 8506, 8483, 8470 and 8402 while resistances are at about 8541, 8565, 8602, 8638, 8722 and 8772. Five +WWs can give about 8629 (if above 8528), 8634 (if above 8496), 8805 (if above 8487), 8836 (once above 8568) and 8974 (if above 8532) (+WWs with higher targets are not mentioned as of now). Two -WWs can give about 8428/8272 (-WWs with lower targets are not mentioned as of now). A HnS can give about 8320 if nifty remains below 8575.

Nifty has been falling consistently and looks headed much lower. However, RSI has gone below 40 on daily chart and the bullish div has increased. Hence we may see a reversal soon. A close below about 8526 can cause more fall while a close above 8776 can take it up further. However, only a close above 8938 may give hopes for a rally. Till then, it remains a "sell on rise" nifty. Global and local eco-political events can have a bearing on how nifty moves in short term. Trade carefully Thursday being an expiry day and since March is normally a month to book for income tax and NAV purposes.

[riteshucha]

bought NF.. days SL.. tgt 8506

[saurabhkurichh]

no hopes yet. Good that are out ritesh