10 June 2013

NIFTY WEEKEND ANALYSIS

Hi Friends,



In my last post I mentioned about Nifty being in its Final Stage of Uptrend from 4531 and has resistance near 6300. Nifty is sliding since the level of 6229. I'm expecting a much Larger Fall back to 4500 or lower levels in next 15-20 months. However, there is no clear evidence of beginning of that Larger Fall.

On short term the Current Fall from 6229 still looks to be a Correction of the Last Rally from 5477-6229. As per my preferred Count The Rally from 5477-6229 looks to be just 'a' leg of the Z Wave from 5477. And currently Nifty is Retracing the Rally in 'b' leg which might be near its completion.


We can clearly see a Falling Wedge on Nifty which has Bullish Implication on Breakout. Despite the Prices making Lower Lows, RSI is Diverging and making Higher Lows. So the Momentum on Sell side is Declining and also the Volume. Nifty has support in range of 5840-5850. So Nifty may take support in this Range and start moving Higher in 'c' leg of Z Wave in a Day or Two. 

Nifty has Initial Hurdles at 5955-6015. Once above these Initial Hurdles Nifty may head up-to 6300. As a Conservative Trader 1 may wait for Falling Wedge Breakout to initiate Long Trade on Nifty.


Thanks & Regards,

Harsh Dixit.