Nifty Weekly Technical Analysis

By | October 3, 2010 8:54 am

Nifty Daily Charts

Technically, last six day’s chart of Nifty is moving under channel pattern and breakout can be either side. Nifty breached the psychological mark of 6,100 decisively on the very last day of week and managed to sustain above that, currently facing stiff resistance at 6,210-6,230 if this level breached decisively then we could see rally upto 6,260 mark and on the flip side immediate strong support at 5,960 if this level breached then we could see fall upto 5,920 mark.

Technical momentum indicator

Stochastic is currently moving in overbought zone,  indicating uptrend is intanct

RSI is trading  at 77 showing positive crossover.

While MACD is on the verge of giving negative breakout and currently showing maximum divergence.

expecting small correction in forthcoming session but overall looking positive and is likely to move between 5,990-6,200.

Nifty Weekly Chart

Several strongly bullish events happened on Thursday, Sep 30 ‘10 and today (Friday, Oct 1 ‘10).

Thursday’s closing level of 6030 was the highest monthly closing level after 33 months.

Friday’s closing level of 6143 was the highest weekly closing level since Jan 11 ‘08 and the highest daily closing level since Jan 15 ‘08.
Both Weekly and Monthly Charts are displayed showing breakout on Charts.

Nifty Monthly Charts

Weekly Trend Deciding Level:6087

Weekly Resistance:6213,6284 and 6310

Weekly Support:6020,5980 and 5941

Nifty Option OI

If one look at Nifty Options for october series 6000 PE has seen Rise in OI indicating 6000 to be major support in coming week and 6200 CE has been written indicating immediate resistance.Mind you this OI keeps on changing every day,hence cannot ne taken for granted the range.

For NIFTY Options Live Charts —

I have heard many traders saying market is in overbought zone and euphoria is forming.Euphoria formation should have the follwing

  • Participation of Retail — Almost NIL
  • Big flurr of fund raising — Happening as 22 IPO were launched but only quality paper got subscription.Hence no Euphoria as such
  • Consensus in earning forecast — Will depend on October Results
  • Leveraging — Not as such as Still maximum Concentration is on Nifty OI not in Index Options as in 2007

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