Technical Check & Outlook 3/11/09
Previous week it was the continuation of the ongoing correction for the second week in a row where Spot Nifty had breached the crucial 4750 level on a weekly closing basis. All the five trading session of the week was losing days and Spot Nifty made lower top lower bottom on all five trading sessions. Global market was also corrective most of the trading days. Finally Spot Nifty ended the week at 4711.70 down by 285.35 points or 5.71%. BSE Sensex closed at 15896.28 with a net loss of 914.53 points or 5.44%, BSE Midcap index closed at 6014.30 down by 496.59 points or 7.63%, BSE Small cap indices closed at 7058.72 losing 614.78 points or 8.01%. The volume was quite higher in comparison to the previous week’s volume and the breadth of the market was mostly negative through out the week.
Technically speaking, if we look to the Spot Nifty weekly candle stick chart, a falling window pattern has appeared which very bearish sign is. Presently the intermediate downtrend is two weeks old and it may continue for some more time. At present Spot Nifty is moving below its extreme short term and medium term moving averages ( 30 DMA & 50 DMA ) but still it is hovering above the long term moving averages (100 DMA & 200 DMA). If we look to the momentum indicators in the weekly chart MACD is in SELL mode apart from that, stochastic oscillator and 14 weeks RSI is trying to come down further. 14 weeks price ROC is trying to take support just on the centerline. Of course still +DI (Positive Directional Indicator) is still positioned well above the –DI (Negative Directional Indicator).
Previous weeks closing of below 4750 technically does not auger well for the market. Next week in the event of going down further Spot Nifty will find strong support around 4650 which is close to 100 DMA (4647), breaching which with volume Spot Nifty may slide towards 4550 mark followed by strong support at 4450. On the contrary in the upside 4750 will offer initial resistance, breaching with volume may take Spot Nifty towards 4900 mark and there after 5050 will offer strong resistance. Here it is to mention that even though in the daily chart Spot Nifty is oversold but there is no sign of any trend reversal as yet.
Global equity markets are correcting further making the technical picture bit weak. In the commodity space Gold (1045$/oz.), Silver (16.25$/oz) and Crude (77.09$/barrel) is trying to consolidate at their respective place. During the week US Dollar regained some of lost weight against its major cross currencies. On the other hand Indian Rupee pared some of its recent gain and ended the week near 47 mark against US Dollar.
Investmentguruindia.com provides expert advice, recommendations, broking firm tips, reports, technical analysis, news and many more things for stock market, mutual fund, commodities, IPO, currency derivatives, F&O, world market.
Source: MICROSEC
Imp Link: BSE, NSE, Sensex, Nifty, MCX, NCDEX
Keyword: Free Tips, Recommendation, News, Stock Market, Mutual Fund, Commodities, Currency Derivatives, World Market, IPO, Investment In India, Investment Guru India, Technical Analysis, NSE, BSE, MCX, NCDEX, Expert Advice, F&O, Nifty, Sensex, Indian Equity Market, Indian Mutual Fund, Indian Commodities , Indian Currency Derivatives, Indian IPO, Updates, stock market today, stock trading, online stock trading, money market, buy, sell, currency market, market forecast, share trading, online trading, options trading investment funds, stocks shares, stocks and shares, share price, insurance, financial services, morning star, day trade, currency options, futures brokers
Disclaimer: While we have made efforts to ensure the accuracy of our content (consisting of articles, views, advice and information), neither this website nor the author shall be held responsible for any losses/ incidents suffered by people accessing, using or is supplied with the content. The views and investment tips expressed by investment experts and authors on investmentguruindia.com are their own, and not that of the website or its management. Investmentguruindia.com advises users to check with certified experts before taking any investment decisions. Investment in mutual funds is subject to market risk so please read offer document before you invest. The Calls, views, advice made herein are for informational purpose and are not recommendations to any person to buy or sell any securities. The author does not accept any liability for the use of this column. Readers of this column those who buy or sell securities based on the information in this column are solely responsible for their actions. The author may have positions in any of the stocks mentioned in this column. The Recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. Readers using the information contained herein are solely responsible for their actions. The information and views contained herein are believed to be reliable but no responsibility or liability is accepted for errors of fact or opinion. Editors may or may not have trading or investment positions in the securities mentioned herein. Also Read Disclaimer