Nifty View for Short term

Nifty Weekly Charts

Applying EMA(13,34,55) principle to Nifty Weekly charts it is found that nifty has made a strong breakout above 13 week EMA last week and facing the first level of immediate resistance near 3230(34 Week EMA) with overbought RSI-2 levels near 95.82 and CCI-4 slightly dipping below 100 levels. Respecting 3230 as a resistance will target nifty once again towards the 13 EMA line i.e 2918(13 Week EMA). Any strong breakout above 3230 levels will target 3340 and 3440 in short term.

Nifty Daily Charts

And Applying EMA(13,34,55) principle to Nifty daily charts if is found that nifty is currently trading above 13,34,55 EMA Before going to the picture EMA Traders will agree a concept that

IF 13 EMA > 34 EMA > 55 EMA THEN = BULL MARKET

IF 13 EMA < 34 EMA < 55 EMA THEN = BEAR MARKET

Nifty Daily charts with 200 day EMA

Daily Charts are showing Bullish Signals as nifty is tradng above 13,34,55 EMA. And the short term Moves are either limited to the bear market resistance line 200 day Moving average – 3454( see nifty daily charts ) or 55 Week EMA -3540(see weekly charts). Overall short term upside is capped at 3454 and 3540 with 3230 as the base resitance line. Quicker upmoves are possible as the daily and weekly RSI-2 levels indicate overbought levels .

Related Readings and Observations

  • Hanung toys:-Emerging star in the textile segment   Scripscan:-Hanung Toys and Textiles LtdCmp:243Target:370Return percentage:50%Duration:6-9 monthsTraded in:NSE-BSEIntroduction: Hanung Toys & Textiles is engaged in the […]
  • Call writers Conquered 4800 Strike Price Call writers  are very busy in 2010 season. They had shorted 5300CE,5200CE,5100CE,5000CE right from 17th Jan 2010 onwards. And in the February season they started writing 5000CE on […]
  • Idea Nifty Trade for 9th Dec 2009 Go Long with the stop loss of 5077. Short only if Nifty Breaks 5077 on EOD BasisSource: www.marketcalls.in
  • Bearish wolfe in Tatasteel !!!! Bearish wolfe found on tata steel EOD charts. so a close below 518 likely to hit 400 target in tata steel in near term. charts below Keep tracking !!! Regards Jay

Comments

  1. Yogi says

    Supposedly, you had a typo..all indicators are at overbought levels and not at oversold levels.Anyways, Good observation, though!RegardsYogesh Tiwari

Leave a Reply

Your email address will not be published. Required fields are marked *