Nifty View: May Series

Update: 16 May, 2016 and ahead view:

Nifty Daily Chart
In continuation with our previous market view, Nifty appears to be moderately bearish and the target of 7580 levels on Nifty Spot is open. We expected a sharp move on Nifty once 7780 broke and the market fell 100 points but bounced back sharply from 7680 till 7920. This suggests that rather than a price correction, we will see a rather choppy phase and sideways (time-wise) correction.

Considering that next week election results of few states will be announced, some volatility is expected but we believe that it will be a non-event overall. For any bullish moves, Nifty has to break 8000 but till then we will be neutral to mildly bearish overall. Market is not ready to give up its gains despite few breakdown on charts which suggests that there is buying coming in at lower levels. Shorting blindly will be a risky bet, it is better to write options in this scenario.

Trading involves an extremely high degree of risk. For most people investing is a better option, especially if you have a job or business or no time to track markets.

To know more about out long term investment advisory services click here.

After the bullish March series, April was a relatively quiet month for the Nifty index. The bullish sentiments appears to be cooling down but bears have still not stepped in. In this post we'll technically analyze the Daily chart of Nifty spot.

Nifty Spot Daily - 1 Year Chart

As shown by the boxes, 7980 levels on the Daily chart has been an important price action zone and Nifty has not been able to break this level since November, 2015. Having corrected more than 100 points from this level again creates a bearish sentiment.

A correction on chart?

There is a negative divergence seen on the daily charts between the RSI and the Price. A break below 7780 levels can show lower levels of 7580 on the index. If however, this range is not broken we can expect the index to be stuck between 7800-8000 range for sometime.


To know more about out long term investment advisory services click here.
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