Technical view by Nooresh

Nifty hits a New High – Should you Buy or Sell ?

This is the question a lot of people would be asking who have missed bus in Nifty.


There  were a lot of bearish voices in last few weeks and specially a lot of them turned negative at the break of 6000.


So before you read further, do have a look at this detailed video analysis which we put up on 4th February 2014. In the video we explained how a 150-400 points bounce is coming at us and also kept on updating the bullish stance on twitter and other forums.


Now at 6450-6470 this is how Nifty looks like.


Cnx Nifty


Nifty quick Technical View

-> Trendline resistance comes in at 6490-6550.

-> RSI has touched 70.

-> This is the first time RSI has crossed 70 in last many months.

-> Some may start calling the above pattern as an Inverted Head and Shoulder/Cup and Handle. Whether this pattern works or not ? ( Check this course out for it )

-> If you did take the plunge at 6000 or on reversal at 6110 as mentioned this is the time to book profits and start spreading your short sell on Nifty.

-> Nifty should make negative divergences in coming days with a lot of midcaps/high beta stocks moving up and creating an illusion of a breakout possibly. So stock specific will remain the way to go but with more caution now.

-> Technically we should review the stance if it crosses 6600. Risk-Reward looks good.

-> Will try to put up a detailed video today or in the weekend.


Bank Nifty


Bank Nifty


Bank Nifty Technical View

-> Although have been a bit scared of trading banks since the last few months coz of the high volatility and downtrend. But we did take a trade of around 5-8% in SBI  and some PSU and beaten down private names. Booked out of it for now.

-> The trendline resistance comes in at 11600-11700.

-> Getting into overbought zone but just that stoplosses would be a little deep in this case the previous top is at 11225 but we will look for reversal signs.



Bottomline :


We had a lot of long trade in last couple of weeks in our QuickGains Premium Services and will still continue to do so on stock specific trades but will be very cautious from now onwards. Reducing a lot of open positions today morning as were long on no of stocks.


Sensex has hit new highs the third time in last few of months. The current index is very different from the one in 2008 so new highs really dont matter with a lot of sector rotation. See this post i wrote on 9 December 2012 – Nifty New Highs So What when we hit a new high.


The bottomline is book some profits/hedge and be very cautious and selective.


Last few seats left.


We have designed a very important and a must course for all investors/traders  – Online Crash Course on Technical Analysis

Sunday 9th March 2014.

Time : 10 am to 5 pm.

Requirements – Headphones with a broadband connection.

Course Fees : Rs 2999.  (There are no early , late bird and group discounts. Limited Seats)

The webinar would be conducted on the platform provided by

The recording of the full webinar will be available to the participants for the next 1 month to have a re-look.

You can subscribe for the course by making the payment on the following link.  ( You can also make a payment directly to our bank accounts here  )

Subscribe the Online Crash Course in Technical Analysis

( Or paste the following in your address bar  )

Thanks and Regards,

Nooresh Merani

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Article by Nooresh Merani

Nooresh has written 2532 articles.

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