NIFTY View

Interesting Index Charts: 5th October 2013

Bank Nifty Daily
The above chart is that of Bank Nifty which has been forming a multi-year cup and handle pattern. This could be extremely bullish now that the handle is broken out. The initial target for Bank Nifty in such a scenario comes upto 13300 and after that 15000+ The support for Bank Nifty is at 9500 levels now. It's safer to trade the possible upmove in Options rather than Futures due to a big stop loss.

Dow Jones (Daily)
The above chart is that of Dow Jones Industrial Average. A few days back we had correctly predicted a correction in DJIA unless 15715 level doesn't break, we are down 700 points from then. The support for DJIA is now at 14850-14900 levels. Some relief might be seen in the index at those levels. As per our analysis, we foresee 2 scenarios:

  1. DJIA will correct and touch the levels of the trendline connecting 1-4. There might be a few corrections in between. In such case, the target near the 14000 levels.
  2. DJIA will fall till 14550-14600 levels at the most and will then start it's rally again. If it finds support at the said levels and crosses above 15000 again, the target for DJIA is then at 16300 levels and even higher.
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