February 13, 2011

Nifty Weekend Update

  • First chart is the weekly chart which shows the long shadow of the weekly candle. This was the candle pattern which so many analyst have been waiting to see. This set up has worked well in the past as shown in the chart.
  • Weekly line chart too shows a possible trend line support. Price has made an upward turn from this trend line in the past.
  • Resistance band in weekly chart is between 5350 - 5530 this band has the main levels which were broken during the down trend which may act as resistance now.
  • Bears will be comfortable to hold on to the short positions till price does not close above 5 week low ema.
  • For bulls they have given a bullish engulfing pattern in daily chart. This set up was failed once during this down trend. We have to see if this works this time.


  1. Dear San,
    Considering the current Nifty down trend,on Tuesday ......not on Monday, if Nifty shall start to trade & close above 5380 firmly then only The Bullish Engulfing Pattern may fulfill Bull's hopes,otherwise it is likely to fail again if it shall start to trade below even 5350,though at present there is no concrete evidence for the same.This time in the worst circumstances even trading up to 5230 is very much hopeful for Bulls.
    From 11th Jan when U S markets started to trade firmly & our market reacted adversely,...now from here onwards it will be very interesting to see whether our market shall react in the same manner i.e.exact opposite, if U S market shall start to cool off because though Dow is trading firmly above 12250,the charts are indicating at least some amount of cooling off from here.So it shall be very interesting.Let us see.

  2. Watch the open interest and volume, as some clues have already been posted in the market.....watch for when and how the bulls walk away....


  3. @mynac

    Last bullish engulfing failed the very next day. This time It will work to an extent. But will face resistance on the down trend line drawn in daily chart.
    The correlation of US and Indian markets are not there these days. The emerging markets like ours are going down while the developed economies like U.S are showing strength.