March 28, 2015

NIFTY Weekend update

  • Nifty is near its 200 Day SMA
  • Daily chart shows Oversold RSI. This set up needs help from 200 SMA. If 200 SMA holds bulls may get a reversal.
  • But weekly chart is looking good for bears. As the weekly candle has closed well below 20 Week SMA after a long GAP. 
  • I have shown RSI as oversold. If this is going to be a trending market. The oversold indicator will remain oversold and prices may keep falling. So 200 SMA is crucial for longs.


  1. Hello sir.if u see there is clear negative divergence at 9100 nifty,as prices made higher high and RSI was making lower high and nifty moved significantly lower from 9118-8269.But now if see,nifty made higher low at 8269(previous low was 7965)and RSI has made lower low.Am I right?If yes,can we move up from here?

    1. Speaking of Divergence there is a big one in weekly chart: Click here for weekly divergence

      If 200 SMA holds the RSI set up you're talking about will play out. If there is a decisive close below 200 SMA then the negative divergence shown in Weekly chart is in play.