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Nifty Breakout on the verge??

Discussion in 'Technical Analysis' started by rajesh_gaikwad, Aug 25, 2016.

  1. rajesh_gaikwad

    rajesh_gaikwad Member

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    Past few days Nifty was trading flat. Was curious to understand what could be the cause. I did some analysis yesterday night, but didn't publish as I wanted to test it today before submission to this forum. Seems like Nifty is trading in accordance to trend lines. Looking at this chart, between 31st August to 5 September should we expect break outs (up or downward) in Nifty??
    I feel forthcoming days will be very flat till it reaches to aforesaid days. after 31st Aug, we may see lots of opps for buying or selling. Your thoughts please. (today's data in Oval shape)
    upload_2016-8-25_14-37-45.png
     
  2. shabbir

    shabbir Administrator Staff Member

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    I also see something is coming and I want the breakdown than breakup because there has been no correction in the market from 6800 to 8600.

    I would like to see some major corrections for me to be able to push in the money that I have been keeping in the sidelines.
     
  3. rajesh_gaikwad

    rajesh_gaikwad Member

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    Today, Nifty closes little under the lower trend line, if it continues to happen in next 2-3 days without breaking the upper trend line, then we could see a major breakdown IMO.

    I think IT stocks are vulnerable currently, not sure what will happen to them if there is a breakdown...
     
  4. shabbir

    shabbir Administrator Staff Member

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    Yes and it looks like the much awaited correction is round the corner because Nifty without correcting does not look like can cross 8700-8750 Range.
     
  5. shabbir

    shabbir Administrator Staff Member

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    And on top of that if you look at last one week chart of nifty hourly, it looks like a head and shoulder being formed and so may be Nifty is topping out.

    Nifty-Hourly.png

    Close below 8580 is needed for confirmation.
     
  6. Suresh_Sinha

    Suresh_Sinha Active Member

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    I think FED meet will decide the direction
     
  7. shabbir

    shabbir Administrator Staff Member

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    To an extent
     
  8. caringvij

    caringvij Active Member

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    What is the effect of yellen s speech which is positive on fed rate hike? Will it affect only IT and commodity stocks or correction in entire market
     
  9. caringvij

    caringvij Active Member

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    If market correct what are attractive stocks for buy
     
  10. shabbir

    shabbir Administrator Staff Member

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    Let's not assume anything and let the market gives you clue on what it makes of the news on Monday
    Don't be in a hurry to buy but then the stocks remains the same which is Britannia Industries, Jubilant Foodworks, Zydus Wellness and Jubilant Lifescience in that order of preference as of now but may also consider investing in mutual funds for ELSS.

    But first wait for a day or two.
     
  11. nirajshah

    nirajshah Champion

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    Nifty finally gave a breakout today out of the trading range. Whats your view on this @shabbir
     
  12. shabbir

    shabbir Administrator Staff Member

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    Yes I see this as a fresh new breakout and so you should be investing now in the index funds if you want to. Will be doing my Tax saving soon.