Nifty Weekly Outlook for September 2012 Expiry

In Bull Market every good news is used by market participants to push market higher and every bad news is met small correction which is used by dip buyers to buy more. When Mamata DIDI took her support off UPA we made a correction of 50 points and when Mulayam told he will give outside support Nifty rallied the most in 2012, Typical characteristic  of Bull market so either stay on sideline but do not short the market and go against the trend which will hurt you both mentally and financially.

Whats in store for next week lets jump and see the Nifty technical outlook as we have Nifty September 2012 Expiry

 

 Nifty Hourly Chart

Nifty Hourly charts is heavily overbought with RSI,MACD  and Stochastic indicator consistently trading above 80. Overbought can remain overbought. When such big rallies come its always profitable to have look at higher time frames to catch the whole move. Monthly chart is still not overbought and Nifty can continue further with brief intraday corrections.Nifty Hourly chart has been trading in a channel with few whipsaws.Hourly trend line resistance comes at 5750 as shown in above chart,

Nifty Gaps

Gaps formation in Nifty Daily chart pattern, 4 gaps in the range of  5077-5600. Do note the GAP formed on Friday was Breakaway Gap

• 5043-5077
• 5238-5309
  
• 5303-5309
• 5399-5415
• 5435-5526
• 5554-5575(Formed this week)

So these levels should be noted down carefully to find further support and resistance.

 

Nifty Daily Chart

Bulls are in offensive mode and as soon as 5648 got cleared off just took nifty with a wild move,till 5720 in matter of minutes where next trend line resistance comes.If we observe Daily chart closely tricky range comes as 5740-5775,Closing above this 5900 is done deal.

If one look at last 2 times nifty scaled 5900 ie, Sep 2010 and March 2011 after closing 5648 it took only 5 and 9 trading sessions to reach 5900, So will History repeat itself ?

Nifty Fibo Retracement

Nifty Fibonacci Retracements from 4531-5630 are drawn in above chart,Major resistance at 61.8% Golden ratio at 5648 which nifty crossed last week and successfully closed above it. Now next target comes at 5952

 

Nifty Weekly Chart

Nifty was up 2% WoW basis, closed above crucial trend line resistance of 5648 . Close above 5700 can further fuel the rally on Upside till 5850 as seen in below Nifty Weekly chart.

 

Nifty Monthly Chart

 Close above 5217 is bullish for market for rest of year.Support on Monthly charts comes at 5448.As shown in below chart September is month of Big moves and we have moved 8.2% till date going by average we can see another 2-3% move which means 150 points on Nifty can further be added to current rally as per historical data of Nifty.

 

Nifty Trend Deciding Level:5720

Nifty Resistance:5775,5820 and 5875

Nifty Support:5648,5581 and 5537

Let me go by Disclaimer these are my personal views and trade taken on these observation should be traded with strict Sl

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