ANANDRATHI
Both the Nifty and Sensex displayed bearish candlesticks for the first time during the week-ended 19.10.07, Market rallied continuously for the last seven weeks and this is the first time it has given a bearish signal.
As indicated last week we saw a heavy sell off in Nifty. Nifty cracked from 5737 to 5102 level which is 635 points down. The stochastic oscillator & RSI Index is between 40 -50 which means the market can see some sort of bounce back in the coming week.
The daily charts however signals lot of bearishness, which also indicates some sort of dip, may be @ 5020 level is quite possible. We therefore can have a week of volatility and lots of confusion. Looking at the chart, we expect stock specific activity in the coming weak.
The medium term outlook of the market continues to be bullish as defined by the moving averages. The important support levels to watch in the Nifty are at 5020 followed by 4842. On the journey upwards 5250 followed by 5324 would be important
resistance levels.
Both the Nifty and Sensex displayed bearish candlesticks for the first time during the week-ended 19.10.07, Market rallied continuously for the last seven weeks and this is the first time it has given a bearish signal.
As indicated last week we saw a heavy sell off in Nifty. Nifty cracked from 5737 to 5102 level which is 635 points down. The stochastic oscillator & RSI Index is between 40 -50 which means the market can see some sort of bounce back in the coming week.
The daily charts however signals lot of bearishness, which also indicates some sort of dip, may be @ 5020 level is quite possible. We therefore can have a week of volatility and lots of confusion. Looking at the chart, we expect stock specific activity in the coming weak.
The medium term outlook of the market continues to be bullish as defined by the moving averages. The important support levels to watch in the Nifty are at 5020 followed by 4842. On the journey upwards 5250 followed by 5324 would be important
resistance levels.
RELIGARE
Our markets were no exception to the law of gravity and busted down in the same manner it was overblown. The Indices remained strong on Monday and held on its gains on the next day too.
Technical correction which was overdue got the trigger of P-notes and later increase in span margin etc. All the Heavy weights collapsed as the Indices were locked in 10% lower circuit. It did recover smartly giving exit opportunity; but one who jumped on to the rise got trapped. Almost 730 points wer e knocked off from the Nifty in 2 days creating deep holes in the pockets of the market players.
It was mentioned that the Nifty could test 5724 points while 5715-5735 points is the resistance area in the Nifty. The Nifty recorded an all time high of 5736 points and from where we saw the free fall. Immediate support ispegged at 5033 points (trendline support in green) while 4993 points is which should not be decisively breached for the uptrend to remain intact.
Immediate support is pegged in the 5074-5110 points’ area while resistance at 5442 points needs to be sustained for further upsides. The IT and Sugar sector scrips showed resilience supporting the Bulls. Ongoing tussle between the bigwigs and the traders saw the Indices oscillating with massive intraday swings. Huge volatility kept the market players on tender
Our markets were no exception to the law of gravity and busted down in the same manner it was overblown. The Indices remained strong on Monday and held on its gains on the next day too.
Technical correction which was overdue got the trigger of P-notes and later increase in span margin etc. All the Heavy weights collapsed as the Indices were locked in 10% lower circuit. It did recover smartly giving exit opportunity; but one who jumped on to the rise got trapped. Almost 730 points wer e knocked off from the Nifty in 2 days creating deep holes in the pockets of the market players.
It was mentioned that the Nifty could test 5724 points while 5715-5735 points is the resistance area in the Nifty. The Nifty recorded an all time high of 5736 points and from where we saw the free fall. Immediate support ispegged at 5033 points (trendline support in green) while 4993 points is which should not be decisively breached for the uptrend to remain intact.
Immediate support is pegged in the 5074-5110 points’ area while resistance at 5442 points needs to be sustained for further upsides. The IT and Sugar sector scrips showed resilience supporting the Bulls. Ongoing tussle between the bigwigs and the traders saw the Indices oscillating with massive intraday swings. Huge volatility kept the market players on tender
