Friday, January 17, 2014

#198 Nifty Update: Evening Star on Index

Earning seasons have been lil disappointing till todays market session but than Reliance industries have presented a better than estimate results after market. TCS on other hand gave a better than expected profit but it was not able to meet its dollar guidance which banged stock of the radar today by traders. HDFCBANK and ITC presented results in-line with estimates so not much volatility on that counters. But on Nifty daily chart today i just noticed a kind of "Evening Star" pattern on daily chart which is complimenting our weekly bearish call since 13th Dec. Technically nifty chart has been biased towards bearish trend in ratio of 70:30 against bullish. Nifty was comfortably trading above 5 SMA since last 4 trading session this week before today but now it has closed below the same on 5th day which may be a sign of some weakness from average. Now monday's opening would be important for our existing short call. Next week strong support level is 6168 while resistance is at 6312. So if you guys have missed trade this week than take a short call if nifty opens up in positive range.

Our strategy: We are intact with our SELL call on NIFTY which we initiated in last 2 posts. 

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