Nifty Analysis - 28th March 2012

Monthly TF- Nifty is making a possible inside day candlestick for the month with supports being at 5183 on monthly level. Stocs are in buy mode and Macd is in sell mode though its making lower histograms.

Weekly TF- Though the candlestick is lower low and lower high - for the timebeing 5179 is the 200ema which is holding and 5171 is the possible buying zone. Stocs is in sell mode and macd is in buy mode.

Daily TF- Today on daily TF candlestick has made a lower low but with positive divergences across all the three indicators I follow. Stocs are in sell and oversold territory and macd is in sell as well.

We would go long when stocs and macd tell us to do so, till then since the conditions are oversold we are not shorting nifty at this juncture.

17th March - Nifty Update

Nifty -

Monthly - Nifty is struggling to stay above 5385. As of now its forming a bearish harami pattern with inside day pattern according to the western charts suggesting that the price rises any further will need some time. Supports for the index come at 5245 and 5210. Stocs are in buy mode after bottoming up from the oversold zone and macd is in sell mode though its forming lower histograms.

Weekly - After opening higher this week at 5240, nifty has slipped back now to 5318. After the doji made last week, nifty had opened higher but the technicals ensured that the index was to sell off from higher prices. Stocs remain in sell mode and macd is forming lower histograms. Any price rises will be capped. 

Daily - Nifty had spent almost 12 days in the range of 5425 and 5325. Now that the index has closed below 5325, with overbought conditions we may go down further in the index. Stocs are in sell mode after turning down from overbought conditions and macd is in sell as well. Moving averages indicate fast fall setup. 

Further this week was a major news event week, and the news were used to sell at higher prices since technicals anyways were negative. Hence this market remains a sell. 

Be short.