November 25, 2010

Nifty Futures Intraday update

  • Nifty Futures important levels to cross are 5904 for bulls and 5859 for bears.
  • NF has been trading in a narrow range from morning since it is expiry day we may see some wild moves in the afternoon trade with caution.

Lic Housing Finance Chart analysis

  • LIC Housing Finance Ltd broke down from a descending Triangle pattern.
  • Stock came down more than 200 points. The fall was stopped at the 200 DMA yesterday, But the momentum and the News Flow may take it down Further.
  • It's interesting to note how a stock forms a bearish pattern before such news comes out.

Nifty daily analysis

  • Nifty spot is close to an important support and resistance line and will give good direction soon. If it beaks down 5750 is a good support area.
  • 20 and 50 day moving average is about to give a bearish cross. If it happens it will be negative for sometime.
  • Market moving above 6020 can reduce the bearishness.

Dow Jones analysis after closing bell

  • Dow Jones could not hit the 50% retrace level today despite the bullish move. This is the third such attempt in as many day's .
  • Same should be said about the 20 DAY MOVING AVERAGE. Dow jones comes close to the moving average but not able to close above the moving average.
  • If these levels are not take out quickly we may see another sell off to the lower end of the trading range.

SPY Chart with resistance level

  • SPY is trading near the resistance level of 120.39
  • An up move will be possible on a breakout above 120.39.
  • Today's morning GAP is yet to be filled. So unless SPY decides to breakout above 120.39 Chances of a correction from here is very likely.