December 1, 2010

Nifty Daily Analysis

  • The falling wedge and the descending channel has given price action in favor of the bulls.
  • But as shown in the 3rd chart the Fib levels of 38.2% to 61.8% are good resistance areas.
  • 4th chart shows 20 and 50 Day Moving Average doing a bearish cross. But Nifty is getting support from 100 DMA which has to break for the bearish cross to work.


  1. Hi..San,

    The effort to bring the short term average below a medium average is so much that on the cross over time a counter trend rally is in place due to highly oversold conditions..

    A normal counter trend rally takes it to the cross over point.

  2. Hi Sir

    On seeing the price action i too believe a counter trend rally is on.

    Normally the bearish crosses like death cross happen during highly oversold condition. Although this is not a death cross nifty looks highly oversold as you said. So a counter trend rally is possible.

    Thanks for your views Sir

  3. sir/san,

    i differ a bit. 4 instances in this bull market
    where 20 sma went below 50 sma (mar 2009) we were fine. this is 5th one

  4. @San any view on RIL? And what price is the cross suggested in your and Sir's comment so that we can safely book out in one lot is it @6072

    December 1, 2010 10:31 AM

  5. @San where do you reply at JN or here?

  6. @Bhavan
    I will update reliance chart later.