Nifty levels for 21/10/2014

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#214 Nifty Update: Some rains on the charts

Deficit monsoon has been a matter of worry for investor but some relief has been seen in the last week in some parts of India. On nifty too we saw some rain of relief for the bulls in the last few sessions. On the 14th July i did post our strategy which was going long above 7625  and we have seen a weekly close above that same level giving a confirmation for the power in hands of bulls. Nifty has closed above all the short term moving averages on Daily charts. On the weekly charts we had got a weak closing last week with Nifty closing below 5 Weekly SMA but that proved to be false as Nifty has closed back above that average. Indicators on Daily are signaling buy on the index but weekly indicators are still flat. As you could notice in the adjoining daily chart of Index, Nifty has turned around from the strong support line which had been a resistance line in the move before. It turned around with a "morning star" candlestick pattern. Fundamentally, its quarterly result season and its the first result for this financial year and for the Modi led government. Infosys has given flat results as per expectations but other 2 big giants Reliance and TCS has beaten street estimates. As per reports reliance has seen highest ever FII investment in the stock of almost 20%. This is the good sign of bulls to be in power for longer term. On the economy front, we have seen some highest IIP numbers of 4.7% which is a positive sign for the turnaround. Technically the Nifty is still in a long term bull trend

Our strategy: We recommend to HOLD long initiated at 7625 as per our last post. Tgts on upside are 7850/8031 sl:7456

#211 Nifty Update: Waiting list for traders at 7150 to 7500

Dream rally its nearing to its end. Modi has sworn in as Prime minster so has been profit sworn into portfolios of investors. Now its time to start liquidating 20-30% portfolio and wait back for interesting levels on the downside to buy back the portfolio. Today Modi team was announced officially and they have started working on the first day. Last rally from 5933 was in expectation of Modi winning the battle and as event has been completed i feel it is even discounted in the rally. Now its time to book some profit. Since the rally from 6820, Nifty has not breached 5 Day Exponential till yesterday, but now it was breached twice. That is the sign of weakness.!!!! Indicators on the daily chart have turned bearish and i have noticed a wedge like formation on the top which could be breached  tomorrow on the downside. Even 5 EMA is around the same level as downside trendline of wedge at 7309 which is hammering the level in trade. On the other side marked Horizontal line at 7257 has acted as a strong pivot point around which nifty has toggled in last few sessions. Last two sessions low has been around the same level creating a strong base to trigger sell on breach of it. We even have a gap downside which could be filled up at 6871. Weekly charts are somewhat indecisive to take either side while MoM we are seeing a strong upside. Though daily chart showing some weakness we would wait and watch for strong levels of 7150-7500 to be breached to trade on respective side.

Our recommendation: We recommend to book profit on all longs which we initiated around 6800. We would recommend risky traders to short positional below 7257 or buy above 7488 whichever is first. While safe traders are recommended to short below 7150 and go long above 7500. On the dowside we have targes of 6870 and 6500  and on the upside 7680/8031 Consider closing of Nifty to act upon the levels  mentioned

*disclaimer: Trade on my idea at your risk and after due diligence. Refer to disclaimer page on website www.chartechnician.com for more. All the words used are just related to article and doesnt intend to hurt anyone personally. 

#210 Nifty Update:India to 'Modi'fy themselves

NaMo NaMo thats what all Indians Chanting since last 24 hours. Its time to change ourselves and 'Modi'fy ourselves in line with developed world. Some of our policies are still traditional which is hindering our growth which may be cleared on a fast track as now we have a stable government. What it means for Indian stock market to have a stable government? As my Analyst says

"The incoming of a Stable government, which after 30 years, in 1984 the last government was with a clear majority. So all the people in the country has not experience of what is means to be have single majority government. If the government manages it well, there will be difficulties in the initial year but once they clear the difficulties, We believe the growth will start to pick up. And if they will be able to fulfill it what they have mention in there manifesto,. We believe that one should be in equities and should stay into the quality stocks for a much longer period than ever before. So it is a multi-year bull run and this is the start of it."

Technically my views are same as my Analyst, which means probability of Green wave in Nifty is about to yet start. Still Indian industry is yet to recover and when they will start performing it would still shoot up our markets further. Since 24th April we were long on nifty (6840) and are both targets 7200 and 7480 has been achieved. But as i mentioned in my last post we extend our target to 8031. Looking at candlestick pattern on daily we are not getting any clear sign while indicators still so positive that we are getting clear upside from here. Expect a volatile month end on Nifty but hold your longs.

Our recommendation: HOLD long with tgts 7600/8031 with trailing SL of 6790 on weekly closing basis

*Note:All the words used in post are correlated to market and it please take position on my recommendation after careful study and at your risk

#209 Nifty Update: Bear's Break Fail

Modi wave continues since we mentioned in the last post. Last phase of Voting was today and voters have turned out in huge numbers. All the states witnessed % rise in total voters over 2009 which is a good sign of indian getting aware of their biggest responsibility. What i personally like about Modi is his personality, strong and Firm towards his work and philosophy. Coming back to economy, we are still in not in a perfect stage. CPI was announced today which is at 3 months high at 8.59% while IIP is still contracting at -0.1% vs 1.1% a year ago. We need some reforms in policies to spur up industrial production not merely NDA win. Quarterly results of corporate are improving which is a good sign of some bottoming out of markets. Last two sessions have been like a dream to bull players. Nifty has moved almost 350 points in 2 sessions and expect some more in next 4 sessions. Technically Nifty has breached all resistance level and all the breaks applied by bears have failed to stop bulls wave. As i have marked on the graph, nifty has just came out of a consolidation pattern "Expanding Triangle" which suggest a upmove which has already taken a start up since last two session. Looking at the indicators, all are still nowhere near to high point which is strongly supporting our bull biased view.

Our Strategy: We stick to our previous post upside view and tgts of 7200/7480 with extended long term target 8031. with trailing SL at 6650 on weekly closing basis

#206 Nifty Update: Cruze Control your Equity investments

Oh Ghosh!! Traders would have piled off 50 points from the gain as we recommended to go short and stop loss triggered. Sorry for that but market is are strong uptrend momentum now. That blow off over 6550 was just untouchable for new trades. We are expecting same momentum to continue for 100 more points upto the range of  6770-6820. Looking at monthly chart and weekly chart this Nifty has no hiccups to downside any more. May be small jerk could come down in first 2 weeks of April which could be taken as buying opportunity rather than considering it a shorting opportunity. Bank Policy on 1st April is the next key even for domestic but i guess traders are not considering a important one this time around. Status Quo is what we expect in the policy as it election environment and RBI governor wont take any risk that could show any biasness to either political party. Markets are purely trending on political mood rather than any economic factor or fundamental factor. Indicators on daily charts are supporting move upto 6780 in near term where as on weekly and monthly chart we can expect a minimum move of 7300/7800/8031 in this calendar year. Before cruzing above 6800+ , we may expect a correctiong upto 6490 and 6260 which could be taken as long term investment opportunity rather than a shorting opportunity. We are bias on Upside on each dip.

Our Nifty Levels: R-6780-6830
                           S-6570,6450,6260

#205 Nifty Update: Flight Missing to 7300

Most searched or read news last week would be abt MH370 missing! It is sad that whole world couldnt track a missing plane. With the all latest technology combined together we cannot find a plane then whats the use of such technology? Same is somewhat with Indian Financial markets. All were ready for take off to 7300 but that group of Bull is missing on the bourse to take the flight ahead. We might see a U turn back to 6250 from here. All the news have been factored and now we dont have any even domestically upto 1st April which is RBI Policy. I personally not expecting any rate cut as that my give some favoring to Congress before election. So may be RBI governor play safe until one more policy. Technically Nifty has given some weakness confirmation as per our technical Indicators combination today. Now we may some profit booking from tomorrow which could even a sharp one to 6250. If you are my old blog follower than i had posted on 25th Feb 2013 on my post http://chartechnician.blogspot.in/2013/02/321-go.html that target on Nifty is 6550 and it has been achieved last week. Market is chewing around 6550 and now i am expecting it so slide dwn for a correction which could be as worse as 6082 that too in no time. RSI has turned negative and Nifty has closed below 5 day average after long time giving a short term weakness sign. MACD was already resisting to move ahead. Volumes have dried up and already IT sector had given warning sign of market turning around for the short term. Defensive stock such as HindUnilever and Asian paints were already showing positive sign which is bearish for stock Market. So we are a bit bearish for short term traders


Our recommendation: We recommend short term traders to SHORT Nifty CMP: 6483 with tgts of 6430/6340/6260 SL: 6550 (Closing basis)

Note: All levels on Nifty are of cash levels. All the words or phrase used are just for post purpose. We are not against or in favor of anything. Any resembelence to true event is not true. Avoid speculation from our post. It is purely related to Nifty Equity Market context

#204 Nifty Update: "Total Siyappa" by "Bull Gang" to win "Queens" mark by"300" points

This Friday was full of Entertainment for Indians, release of 4 awaited movies as i have mentioned in my tag line and Secondly they all combined, gives the Nifty rally same effect. "Gulabgang" (bulls here) with a mark of "300" (314 points range on nify last week) have won over bears to achieve 'Queen" label (Life tym high on Nifty) with 'Total Siyappa" (Total madness buying on the D-Street). A guy like me who is Film-o-Holic and Nifty Crazy would be on High after witnessing this friday. All the 4 films and Nifty have been hit till now. What we witnessed on the D-Street on Friday was total madness. Stocks which made the gang on D-street were two hot chameli's of 90's L&t and Reliance (as Madhuri and Juhi of Film Industry). We have seen some FII buying lat week in the stock but they bought more in Debt segment. FII figure aproxx was Rs. 3000cr net in equity against Rs.10000cr net in debt. So one thing is clear than even developed economies trust our debt products more than equity until the election results. As we have seen a tremendous breakout performance by bulls as marked in the chart, it thus proves technically that they are overall in control to take nifty ahead in long term. CAD figures were announced last week which has narrowed down sharply which is taken positively for the markets. GDP has been better last month YoY basis which gives compliment to market recovery signs. Now as code of conduct has been applied no new policies would be announced by congress but new banking licenses would be announced by EC soon while RBI policy is due this month end. We except a rate cut. Now all the demons for bear markets are left behind fundamentally. Technically, Nifty is in the third wave degree which is considered to be the steep rally. We might see some correction on daily charts which would be much deep though. A consolidated week may be expected next week.

Our Recommendation: We recommend safe traders to wait for buying level around 6150-6300 levels with than tgt of 7300. We would post soon when there is a clear buying opportunity. Safe traders DONT short

*Disclaimer: All analysis is subject to market risk. Study market carefully before investing on our advise. all the words mentioned are used with reference to market and for the posting reference only. 

#202 Nifty Update: Off-Road driving by Nifty

Nifty was driving high speed on the road and it has just slipped off the road today. As you all can notice in the chart Nifty has just breached a strong upside channel today and closed above that level. It had been facing strong resistance at this line for last five times but on the 6th time it just hit a 6 out of the boundary completely. Our third tgt 6211 has been achieved on our long call on Nifty re-initiated at 4th February. We have seen some re-initiating buying interest by FII in indian stocks. High delivery positions have been witnessed in the fair valued stocks in Index as well as in the mid-cap sector. Economy around the world has been showing some signs of improvement starting with the Euro zone. Portugal has seen 1.6% growth and Moody might give it a stable rating from Negative stable. UK has given some growth at 0.5% which is better than nothing. Still Japan is in deflation mode and it is trying turn themselve. Can Abenomics save them? April will say!!! Indonesia is the economy to watch in this next cycle. People say that it can outperform emerging markets in terms of Growth rate from this point. Coming back to Nifty technical it has just taken strong support on 50 Daily SMA and for the 2cd consecutive day it has closed above 100 daily SMA situated at 6163. If Tomorrow it closes about the same level than it gives confirmation for the bulls. Nifty has seen some increasing trend in the volumes in last three session. Expiry being tomorrow, its gonna be a high volatile session.

Our Strategy: We are intact with the Hold on Long with final tgt 6263 and a Extended risky tgt of 6310 . Trailing SL comes down to 6100

#201 Nifty Update: Budget gives "U" turn at the Verge

After long time we are back to our post run but since our last post #Nifty was pretty range bound which didnt gave us a chance to write something new on the blog. Today our 2cd tgt 6131 on #nifty has been achieved on long call initiated on our #200 Nifty Update. Yesterday Nifty gave a ascending triangle breakout on Hourly chart which was coincided with the Ascending triangle breakout on daily chart today which is giving probable target of 6160 on the daily chart. Indicators have turned positive on daily charts while weekly chart indicators are still flat indicating a neutral position. A interesting pattern which i can notice on Weekly chart above is a symmetric triangle which is also known as spiral formation. As name suggest a spiral which travels between two end, same is with this chart of Nifty. A week before it has bounced back from support level and now it may travel to resistance line on the upside which could be around 6240-6280 levels. A gap is also unfilled at the same level of  resistance which makes it a much possible tgt on upside. On downside Nifty even bounced back from 50 Weekly SMA (blue line) which made it a strong level with the support line. FM announced a interim budget which was a mixed bad but was consumer friendly which reduced excise on cars and also raised subsidy targets for Fuel and Food. Earnings of frontline stocks have been in-line with the estimated or to say better than estimates. IIP, Inflation and CPI has improved in favor of markets which is supporting Nifty Rally. So now only trigger from fundamental side could be Election.

Our Strategy: We are intact with our previous Long call with next activated tgts of 6211/6263 with trailing SL on Long of 6030

#199 Nifty Update: Hanging on the verge of Peak

On our #195 Nifty update we recommended tgt of 6070 on Nifty Short which has been achieved today and i guess you guys would have atleast booked some profit. Now future path on nifty looks lil bit dicey after carefully studying banknifty chart. Ofcourse Weekly charts and Monthly charts are looking still bearish but we are smelling some internal pull back from the daily charts of nifty. Firstly, As you all could notice on the chart Nifty is travelling in downside channel and today it has just managed to cling on the peak of support line in Channel. Technically tomorrow is important day for Nifty analyst as closed would be important for weekly candle as well as monthly candle. Secondly, Considering only todays candle it is a hammer or you can say a Dragon fly which is a sign of a reversal for a short term. And Finally, if tomorrows opening is little positive above 6082 than we could see a Morning star reversal after tomorrows close. Yesterday, FED tappered more $10 Billion  from its bond buying programme which helped markets to crash today morning but fundamentally you think its good news for Economy as tappering is sign that FED is smelling a recovery in its Economy. Our results have on other side been hawkish and unable to decide the state of economy. Our markets are majorily for National Election rather than Economic recovery. So coming back to Index for near term we are expecting a short recovery of 150-200 Points.

Our recommendation: Book 100% profit on our short Call near our 1st tgt 6070 and we recommend to go long near to same level with tgts of 6125/6170/6230 SL:5998

#197 Nifty Update: Critical Range 6164-6328

All of sudden was drawing trend-lines on weekly nifty chart and came across two lines which are guiding nifty's road. After market Inflation was announced which has eased with higher margin compared with last month but i guess last hour move of Nifty cld have discounted that. Technically indicators have all of sudden spurt up on daily chart but not much change on weekly chart. We would ask traders to keep 6164-6328 range in mind for this week as they are the guiding lines as you all could see in the chart

Our Strategy: We are intact with our SELL call on NIFTY where safe traders SL at 6358 and Risk traders at 6450

#194 Nifty Update: "Dark Cloud" covers Market and 430/688 points rain expected

Rain in winter is unusual but for the markets this COULD happen, so now carry a RAINCOAT i.e., put option to protect you portfolio for new 2-3 months. Last five session has been continuous downside and that was like a slow poison to traders as slide was a bit everyday. Looking at 'Weekly chart" after today's close i was shocked to see a strong negative candlestick pattern "Dark Cloud" cover. This pattern suggest a reversal to bullish trend and this time its more relevant as its at a "Clear top". Indian Economy hasnt improved as expected or as market has discounted. Yesterday IIP were worst than expected at -1.8% while inflation was at the peak at 11.42% (approx). RBI is expected to hike rate in upcoming monetary policy while FED is expected to start tapering of Bond buying which will squeeze some liquidity from the markets. One more reason to see some profit booking around the world and India is the financial year end for US which makes FII liquidate their investment to adjust Balance Sheet. But one good thing for me is that a new high was in December than rather November because History says if a new high is in november than we see a downside for a long term but this was not case for us this year. Earning results would be announced next month and i am expected a little hazzy profits as auto industry hasnt seen sales as expected in diwali festive. Now coming back to technicals, Weekly chart has surely given a negative candlestick pattern while indicators are also bending negative. Nifty took strong support at 5 Week EMA which is also a strong support was next week. On daily chart we may see some short covering as we have seen 5 straight down side. On monthly chart nifty is trading below the resistance line. For bulls in power this expiry should close above 6288. From the elliot wave point, this was end of Wave 1 from 4624-6415. Now we expect correction of 430 points minimum to maximum 688 points if nifty trade nxt week below 6145-6152.

Our Strategy: SHORT Blindly below 6152-6145 and Sale on Raise with SL of 6450.. Downside targets for next few months 5950/5750/5470

#193 Nifty Update: A pause on the way

As we mentioned in our article update, Long was our call on nifty after Fridays move. Safe traders were recommended to go long above 6212 and i hope all are long. but todays move shows a pause on upside move. I am sure it is a short term pause!!! Nifty might hangover around these levels before moving forward. As circled  a perfect Doji has been formed today which also can be somewhat a dragon fly which is a sign of weakness but as its not the clear top but within yesterdays range, it could be jst a short term weakness rather than long term. 6123 is a strong support on daily charts while 6055 is the support for the week. As we have been saying Midcap are still a gud buy for portfolio holders. Indicators on daily charts are surely giving buy sign while weakly chart indicators are still flat.

Our Strategy: HOLD our Long nifty call initiated at 6176 (6212 for safe traders). tgt 6450 

#192 Nifty update: Smell of Rotten Stocks

After a long break when i look at the charts, i am smelling some rotten stocks which are over ripped and could throw away investors profit if not got away from it at right time. On my last post was long with small stop loss at 6030 which is been triggered. Now charts seems losing bulls momentum and bear might take control over it next month. I would recommend to exit 30% of the longs which i had intimated long back for portfolio at around 5400-5600 levels. Fundamentals aren't much at a peak stage which could drive stocks more crazy on upside in short term. Looking at US bond markets. Yield on treasury is increasing and we could see a tapering soon which could have a negative impact on our markets as money would be drove out of our stocks to some extent. Secondly, December is always taken as profit booking month for FII as they have their financial year ending. So making some bet on FII inflow i am negative for near term. On other side we had seen mixed bag numbers for our companies and i am sure investor would surely wait for next round of earnings before betting for long term on our companies. Technically, a monthly chart i am seeing a strong retracement which could stretch down upto 5400 but dont expect a straight line fall unless some news from political front. Indicators are weakning all time frames

Our Strategy: We recommend to Short NIFTY (CMP:6057) with tgts of 5900/5720 SL:6140 (Closing basis).For safe traders or portfolio hedgers buy 5900 (dec) PUT nr to 39.10
We recommend to keep SL after expiry as tomorrow we could see a volatile session. all are cash levels

#191 Nifty Update: Nifty-Leela is a BlockBuster

Weekend leela fever continues, whether its Ram-leela or Nifty leela, both had are Blockbuster for the people. On last thursday as i mentioned we had a morning star pattern formation and we had left with confirmation and today we got that with a booster. Global markets had performed good over the weekend plus RBI said that no hike rate in near term which has given a gap up opening on Nifty. New banking licenses are gonna be formulated by this Jan as said by finance ministry. for the same reason banking had seen some positive sentiment booster today on Index. Nifty has comfortably closed above all the short term moving averages. Today some of the scripts have seen huge volumes above the daily average. We are still expecting some upside on technical basis and Reliance(CMP:875) could be the outperforming stock as it has not seen an rally over the period, so keep a watch on it. Tatasteel is still a good buy for long term but wait for a correction near to 395-410. Technically this rally on Nifty has resistance near to 6400-6500 range. So bull is expected to continue with Nifty leela and computing with Ram leela performance on WoW basis ;)

Our Strategy:Hold longs as we intimated above 6160 with sl of 6030 and tgts 6280/6360/6500

#189 Nifty Update: Haathi vs Chiti

We all have forwarded funny sms Jokes of Haathi vs Chiti  but now traders are experiencing such fight on Nifty Chart. As all technical analyst could make out from my markings on chart that two "head and Shoulders" pattern are visible i.e., One being a confirmed breakout (Haathi) and Second being in formation (Chiti). That the size differs so its easy for some people to say that a small one is not much of importance but as hindi dialogue says "Chiti chahe toh Haathi se bhi Tandav karva sakti hai" and same is true here. Techinally size does matter on the charts but we cant ignore the possibility of smaller formation. Fundamentally we dont have much to cheer domestically but US economy is showing signs of improvement from employement data and ECB also reduce interest rates to 0.25%. Results have all outperformed street estimates. If we talk above correction than Bank Nifty has already given correction. As You all could notice that even nifty has closed at support line of Channel. So everything including a Chiti H&S suggest a pull back early next week but who wins the war depends on breakout. Green patch defines High Volatile range on the charts.

Our strategy:Wait for some confirmation on either side. 6080-6253 is the range. So Wait and Watch as of Now.

#188 Nifty Update: today Nifty acted as a melted Ice cream

Do u remember that day of your childhood when you used to get your favorite icecream??? Than when it used to melt we would lick it to capture every drop of the icecream. Nifty was something like that today to bulls. After a steady opening it gave a tremendous mouth watering rally to 6289 but than it dropped off drastically and bulls felt like that they had just got icecream (nifty) in their mouth but than it dripped from the lips (edge) to the floor. And all bulls would have been crying on nse platform just like a small child. As we could notice in the charts, nifty had cracked out of a small channel and it was surely signal was like a  "Choco Nutty" of havmor to bulls but than we saw some profit booking on banking stocks and midcaps. Today Pharma and IT had held up nifty to some extent. Technically, markets are some more of weakening signs on daily chart. Weekly chart and Monthly chart are still at a pause showing consolidation phase in near term. A small channel is back in action to guide nifty to some downside. Indicators are showing weakness in the daily chart. Nifty has strong resistance at 6207/6232 for tomorrow and support at 6146 for intraday. 6180-6196 is a chewing gum range where market could revolve around. On the breakout on either side we could see market taking support at 6146 or resisting near to 6232

Our strategy: Our closing trailing SL at 6200 has been triggered. Now we recommend to go long above 6207 tomorrow and safe traders above 6232. We dont recommend shorts as secular trend is up for now. 6167 is strong closing support level.

#9 Article Update: Can Investor’s rocket reach sky line this Diwali?

Nifty is about to reach the peak with all energized investors. Last issue I mentioned that nifty was resting before touching a peak and that’s what happening currently on the chart. October is always consider to be a eventful month as we have quarterly earnings report and this month is considered to be a turnaround time in the history of equity markets. Though not always but yes for India this was slightly the same i.e., turning point for our investors. Economy of India is still in a dicey stage where inflation is at a rising stage and Industrial Production numbers aren’t still a cheering stage where it should be. But the FMCG and service sector companies have started showing improvement on fundamental grounds which is a sign of start of new long term Bull Run in coming years. Though we cannot rely only on that ground but combining other factors we can be bias towards a bull run. IT and Pharma sector has given a good results too with financial sector. Lagging sectors like commodity and Infra has yet not beaten street estimates which is a perfect sign of a bull run cycle as these sectors are always last to give a run.

Government had taken some interesting steps during October month. First, they cleared bill for Jet-Etihad Deal. Secondly, FIPB cleared cleared some deals worth Rs,.1213 crore recently. Thirdly, RBI governor has taken some calculated risk to control money flow by adjusting MSF twice this month. Fourthly, controlled import of Gold has driven Current Account Deficit (CAD) of the country down which is a good sign. On the other side US had a dead lock for almost 10 days for passing the budget. At last on 17^th Oct they passed the budget with a statement saying that a tapering would still be delayed upto mid 2014. This was cheering for the currency’s outside US and even to Indian Rupee. Looking at the technical of USDINR I had initiated short for long term on our blog on 17^th Oct and we still recommend to short over the view of 7-8 months.

Above is the USD/INR weekly chart and we could see that after a high we have seen a sharp downfall. It’s time for some short recovering on the weekly charts but indicators and wave patterns suggest some more downside in a long time scale. On daily chart 50 EMA is at 63.20 which could act as a strong resistance in near term. But now we could see some consolidation. Our recommendation on USD/INR is to short on every rise to 63.20 with downside tgts at 57.40/54.70 Sl:64

  

Coming to investors rocket (nifty) technical chart, we were bullish since last month issue at 5833 and we are intact with the view. Our 1^st tgt 6212 on nifty has been achieved comfortably this October which I mentioned last month.  Nifty has been taking strong support at 5 Weekly average. Indicators are still positive on all time scales but daily chart suggest that a pause is about to arrive pretty soon after a new life time high. We are in the 5^th Wave of a larger 1^st degree on the monthly chart and we could see this end rally anywhere between 6220-6500. Nifty just broke a small downside narrow channel today signaling a strong move ahead. We are bullish on Nifty as the Banknifty and Midcap index are in strong bullrun as per the charts. BankNifty has taken a strong support at 10600 and now we could see a move to close around 12300.

Our recommendation on Nifty: Hold longs on Nifty initiated last month at 5833 and book profits on next two tgts 6370 and 6500 with trailing SL at 6040 and 6200 on achievement of 6370

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Note: All the data and graph is as of 29^th October 2013 closing

Disclaimer: I may have personal position in index and above mentioned stocks. Views and News mentioned above may have Errors and omissions. My views are biased more towards technical analysis. Please read and study the market carefully before investing on my idea. For any suggestion contact me on my email. Some words mentioned in article don’t mean their actual meaning. They are correlated for market.

#4 Currency Update: 60.40 achieved

On 17th Oct we mentioned to Short USD and we have achieved our 1st tgt 60.40 on the next day itself  But now before activating next two targets we expect a pull back to 50 EMA near to 63.10. Indicators are also at the support zone and expect a recovery soon. As u could notice yesterday it breached resistance line and now we could see some upside movement. But Weekly and Monthly charts are still weak so dont go long  rather short on every rupee rise

Our Strategy: SHORT USDINR around 63 who missed at first go. Call is for long term hedgers while traders can go long at CMP for tgt 63.10 sl:60.80