October 19, 2010

Nifty daily analysis

  • Nifty did manage to pull back from day's low and tried to stay above the price pivot zone of 6037 - 6075. This zone is important, trading above this zone will favour bulls and bears will try to pull price down below this zone.
  • Nifty is forming a broadening top pattern. One point to note about broadening top pattern is that they are not as bearish a pattern as suggested by the name. 50% of time they breakout on the upside.
  • Price managed to close above 5 day low ema and has created a hammer candlestick which can result in some upside.

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