Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Nifty Technicals – Will it Solve the Mystery???

2 min read

CMP : 4360

Last Friday’s unusal celebration makes me think about the contrarian side and this time very badly about
indian stock markets.Also operators targetted the reliance badly for the past three days. They treated
reliance very badly and on friday immediately reliance becomes their pet. Looks more unusal. I personally
feel that its a big game of operators to squeeze the shorts of small traders.
Where this market is going to move? It is quit difficult for me to come up a decision. So I tried
analysing all the hourly,daily,weekly charts of nifty to come up with my conclusion.
Infterence from Hourly Charts :

 

Last Friday close in nifty above 4360 made a breakout signal in Nifty hourly charts but its rsi level is not
imressive because its RSI level spikes immediately from 20% to 60% which shows only a small uptrend is
left as per nifty hourly charts. And 200MA(hourly) EMA is currently at 4385. So as per hourly charts strong
resistance in 4385-4395 zone. And as per this chart maximum upside is possible upto 4440 for this week.
Inferece from Daily Charts :

So I try to figure out Nifty Daily Charts. Looking at daily nifty charts there is not conclusive buy or sell signals.
Slow Stocastic look more confused with huge number of crossover indicating a confustion. And MACD is just
crossing zero indicating a sell signal as per daily charts. And Also Nifty Closed Just above my favorite indicator
20 day EMA(4356). So if any of the day left closed below 4356 will definitely indicate a strong reversal. And as per
Daily Nifty Charts resistance are coming nearly 4400.
Inferece from Weekly Charts :

Nifty CMP : 4360

Atlast coming to Weekly Charts indicating only Strong Reversal.Slow Stocastic is showing strong reversal

and also Nifty weekly charts closed below 20EMA for the second week continiouly. And weekly resistance
coming near 4431- 4447 range And also i try to analyse some its constituents like Reliance, L&T, ICICI, SBI,
HDFC, Reliance Communication, BHEL. Almost all the stocks are below 20 EMA except BHEL. And BHEL
is currently in the mood to fill the gap formed near 1600 range. So overall Nifty Weekly Charts are indicating
a Strong Reversak Pattern with falling Stocastic Indicator.
Conclusion:
So by concluding all these things for the current week we are limited upto 4440 range in upside with
sequence of resistance at 4385,4400,4440. If we are able to sustain above that then we can see 4600-4800 levels
in coming months And Now this time iam gonna believe oStrongly on Nifty Weekly Charts rather than try beliving
on Daily and Hourly Charts. Just taking some longer duration charts.
1)And if we try breaking 4250 for the third time then i sure we are gonna reach 4000 kind of level and
even lower targets are possible.If you note currency markets Yen appreciates from 110.50 to 108.50 and rupee depriciate from 42 to 44. During june same thing happens and by that time crude Shots up heavily.In short rupee should not depriciate and Yen should not aprreciate But unfortunately both happens at the same time.And Market will explaining the effect.To know what happened last June try visit
Yen – Rupee Currency Mismatch and Selling in Indian Market

2) If we are able to move above 4440 then it suggest that crude is going to fall below $112/barrel because
operators targeted Reliance without any reason and cairn is moving little in negative direction. And Reliance
upmove about 3% close on last friday looks quite unusual.

Let See How this twist ends.
Happy Trading!!!

Regards,
Rajandran R
Auhor – Marketcalls
Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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