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Support And Resistance for Nifty

Discussion in 'Technical Analysis' started by shabbir, May 2, 2012.

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  1. shabbir

    shabbir Administrator Staff Member

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    Six month's Nifty Charts is as follows.

    [​IMG]

    There are two views on Nifty and I have shown both of them with blue lines.

    The horizontal line shows support around 5150 levels and if this does not break means it can get a nice upswing.

    The second line which is formation of lower tops and the peak in each up-swing is less than the previous peak.

    I firmly believe that 5150 will break eventually because USD to INR ratio clearly indicating weakness in Indian Market.

    What are your views. Share them below.

    Charts by Chartink.com
     

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    shabbir, May 2, 2012
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  2. Suresh_Sinha

    Suresh_Sinha Active Member

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    I am all confused and as per your book I think we need to wait and see which one is formed and trade accordingly.
     
    Suresh_Sinha, May 2, 2012
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  3. shabbir

    shabbir Administrator Staff Member

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    Really Nice Answer Suresh. :D
     
    shabbir, May 2, 2012
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  4. sunil_hajeri

    sunil_hajeri New Member

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    For long position, wait for the breakout from sloping trend line.

    For short position, wait for the nifty to break down from 5150 level on closing basis to go for short. As it is descending triangle, it will reach upto to 4700 levels. This is my assumption.

    Market will tell where it is heading. We will wait and watch.
     
    sunil_hajeri, May 3, 2012
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  5. jcthaker

    jcthaker New Member

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    nifty

    Agreed with Shri Bhimani,Nifty may go down as indicators like stochathic,RSI ,MACD comming down and nifty may head for 5100-5150.5150is level to watch.
     
    jcthaker, May 3, 2012
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  6. Suresh_Sinha

    Suresh_Sinha Active Member

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    Can you explain how do you judge weakness in market based on USD to INR ratio
     
    Suresh_Sinha, May 3, 2012
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  7. shabbir

    shabbir Administrator Staff Member

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    USD went from 48 to 52 in few weeks time and this means that there is lot of outflow from India indicating weak market.
     
    shabbir, May 3, 2012
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  8. paulmathewmac

    paulmathewmac New Member

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    The trendline, one school of thought says, should touch the lows or the highs of the candle bars and not their close.

    The general view is that Nifty may go down. That get's me worried, because, quite often things go quite the opposite, once the general view is well established. Otherwise, though I'm not really stock-whether-wise, I'm a votary for the downtrend.
     
    paulmathewmac, May 3, 2012
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  9. shabbir

    shabbir Administrator Staff Member

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    As anticipated, its the support that has broken.
     
    shabbir, May 7, 2012
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