Technical Analysis of Indian Equities by Nooresh

Nifty – Good volumes in cash on Expiry. Range bound moves to continue.

Niftyderivative

 

Nifty has broken the major supports at 5150/4950 and the intermediate uptrend has been broken but no momentum seen on the downside. On a longer term trendline and short term parallel channel supports are placed at 4800. An uptrend can resume above 5050. Expect range bound moves between 4800-5050 any move beyond this range will give a trend change giving a 200-250 points directional move.

The view for 6000 Nifty has been negated with the close below 5050-5100. Nifty has reached oversold levels equivalent to major panic bottoms like December 2011, October 2008, March 2009 and a major bottom formation takes some weeks around this levels.

 

The most important thing to note today was a huge volume on cash stocks today and in Nifty too ( look at the last green tick on the chart above ) . Maybe it could be because of expiry but we did see a lot of cash volumes and some wild spikes in Reliance Inds, Infosys, Bank of Baroda and many stocks in derivative segment.

 

June will be an interesting although i am very optimistic on this month in terms of returns.

 

Happy Investing,

 

Nooresh

Article by Nooresh Merani

Nooresh has written 2583 articles.

You can follow Nooresh Tech on Facebook and Twitter here.


{ 0 comments… add one }

Leave a Comment