Wednesday, April 6, 2011

Nifty Update

Here are few observations updated for trading Nifty this week.

1. The Trendline Resistance target has been reached today. Break of this trendline now will signal upmove again.

2. Still the Daily Indicators remain Overbought but with no sell signal. Daily MACD shows negative diversion. Interestingly Weekly MACD has given a buy signal.

3. The Volume Profile shows selling above 5900 levels in 3d chart .The 5d chart gives 5830 as Imp. support level (which also is the apprx. expiry level of the last series.)

4.The updated Fibo chart for supports now-

5. The Option data shows max. buildup at 6000 calls.This may act as resistance for this week.(Though may be tested above today's high) 

6. FII's have been consistent buyers in all the three days.

-The correction may be shallow , trading below 5915 can test 5830 level.
-Close below 5830 level only will test the support at 200dma and fibo chart at 5700 + level.
-Keep an eye on break of the trendline in daily chart for resume of upmove to next fibo retrace level (78.6%) of 6100 level.

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