September 8, 2010

NIFTY daily chart analysis

NIFTY DAILY CHART
NIFTY WEEK CHART
  • Nifty daily chart is looking positive with the index closing above the broadening pattern. Now the index should trade above 5600 for the bullishness to continue.
  • Any dip below 5600 will be negative.
  • Nifty's weekly line chart is showing a breakout above the resistance line.
  • This week should close above 5550 for the breakout to sustain on closing basis. If nifty comes back and closes below 5550 we may not have a breakout on weekly closing basis.
  • The worst scenario for bulls would be a whipsaw in weekly chart which can have catastrophic results like what we had back in 2008.

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