NIFTY Triangle Upto 5950

NIFTY Daily Chart Technical Analysis

(Each candlestick represents one daily of stock market activity)

NIFTY has hit its old resistance around 5950, a resistance level it had encountered back in April 2011.

As we can see on the chart, NIFTY is now climbing in a triangle considering its steep support line and its current resistance.  The chart denotes lateral movement within the triangle until Feb 2013.

Lets see if that is how it goes. 

In case NIFTY breaks the triangle upwards or downwards with increasing volume it would be a good time to take long (on upward break) or short positions (on downward break).

All posts related to NIFTY

NIFTY Daily Chart Technical Analysis

NIFTY Outlook for the Week July 4 - 8, 2011

NIFTY WEEKLY TECHNICAL CHART ANALYSIS:

This has been a good week for NIFTY, after it bounced back creating a hammer formation from the dreaded 5200 level in the last week.  However, the next week can be difficult and the index could fall again.

You can see that there is a line of resistance which is applicable since Nov 2010, i.e. 7 months ago.  This makes it a strong line of resistance to reckon with. 

The index reached this line of resistance twice and then fell back again.  Out of these previous two times, it tried to break above this line for an entire month in the Apr-May 2011 period but couldn't do so and fell back again.  You can see that all the weekly highs during that period touched the line of resistance but failed to rise above it.

Now again for the 3rd time, the index is about to reach this line of resistance and will meet it around 5717.  This is an important point to watch out for.  If the index rises above this level then we can look at a positive movement in the coming weeks.  However, if 5717 is not breached and the index falls below, then we would ideally expect it to head towards 5350 and then 5200 before making any further movements. 

For now, wait and see what happens at 5717 before making any important trade decisions.

All posts related to NIFTY

NIFTY WEEKLY TECHNICAL CHART ANALYSIS

NIFTY Near Its Support Line

NIFTY Daily Chart Technical Analysis:

NIFTY has been falling since the past few days as expected (Check my previous post on NIFTY to see we had expected this fall).  It has finally reached near its support line. 

The 5500-5550 is an important level and NIFTY is expected to bounce back from here.  If it bounces back it might be a good time to expect a bull run.

But if it falls below 5500 and closes below this level for a couple of days, then we might face a further fall and it might take a while for NIFTY to recover.

The next couple of days will be important in taking a positional call on NIFTY. 

All posts related to NIFTY

NIFTY Daily Chart Technical Analysis

NIFTY in Decreasing Triangle

NIFTY Weekly Chart Technical Analysis:

Nifty has been interestingly volatile in the past few weeks.

As visible on the chart, there is a resistance line of a decreasing triangle that Nifty is unable to break since the past 3 weeks.  This resistance line began in Nov 2010 and Nifty is unable to break the same as of yet.  

Think of a long position this week only if Nifty comfortably goes and closes above 5945.  In fact, there is a chance it might fall back to 5550 - 5600 levels.  Be alert, it's not a bull run yet.

All posts related to NIFTY

NIFTY Weekly Chart Technical Analysis

KS Oils: Correcting after a fall

K.S. OILS Daily BSE Stock Chart Technical Analysis:

KS oils has fallen quite sharply in 2010 and is right now near its lowest price range in the last 3 years. 

Close & CMP: 32.40 

• Currently the price is traveling within a price channel as is visible on the chart.
• Rs30 is the important support level for this stock price.  If it falls below 30, we can only wait for it to return.
• At this point though, falling below 30 is unlikely.  The price can be expected to hit 30-31 and then rise back to 33-34 making small swings.  After that, it is important what happens. If the price rises above the price channel's upper trendline, there might be a breakout with high volume and this can be traded with a long position.
• The current price channel is a decreasing triangle double zigzag A-B-C Elliott Wave correction unfolding.  This means that we should wait before taking long-term positions on this stock and wait for an impulse wave (trend) to emerge. 
• However, you can still trade any breakouts above the price channel as discussed above as this may be a good short term opportunity.  Keep your stoploss tight if and when you make this trade.
• KS Oils के शेयर का भाव त्रिकोण आकर में चल रहा है, जैसा की आप चार्ट पर देख सकते हैं.  ३० पर इसका पक्का सुप्पोर्ट है.  ३० के नीचे गिरा तो फिर राह देखनी पड़ेगी की वापिस लौटे.  और अगर यह भाव के त्रिकोण से ऊपर निकल गया आचे वोल्यूम के साथ, तो फिर इसे खरीदा जा सकता है लेकिन स्टॉप लोस को कास के रखें क्यूंकि इसका अभी भी कोई भरोसा नहीं है, अभी तक कोई ट्रेंड नहीं दिख रहा है.   

All posts related to KS Oils

K.S. OILS Daily BSE Stock Chart Technical Analysis

(analyzed for Prashant, Rajkot)

Tata Steel: Struggling to return

TATA STEEL Daily NSE Stock Chart Technical Analysis:

Tata Steel Close & CMP: 613

• Tata Steel has a long term diagonal support line as visible on the chart.  This line crossed the diagonal resistance last week at the 638 price level.

• As is visible on the chart, the price fell below and remained below the diagonal line of support.  This is a negative signal.  As the diagonal line of support is moving upwards, it is obvious that the more time Tata Steel remains lower, this line of support will seem farther and farther.  

• Moreover, the diagonal line of resistance will now start pushing this stock's price lower.

• The only good luck charm is the support line at 578.  As long a this line withholds, one may feel safe.  However, if 578 is taken out, it's going to be dangerous for Tata Steel.

• A fall below 578 may be traded with a short position.

• For Elliott Wave Traders:  2 sets of A-B-C corrections seem to have occurred.  We are now looking at either the Wave 1 of the next bull trend, or Wave X for the next set of corrections.  If 578 is taken out, then we can conclude that we are in the next set of corrections and headed down for another Wave C.

All posts related to Tata Steel

TATA STEEL Daily NSE Stock Chart Technical Analysis

Jubilant Foods: Trend Triangle

JUBILANT FOODS Daily NSE Stock Chart Technical Analysis:

Jubilant Foods is in a trend triangle and most probably a breakout will occur on 27th, Monday.

Close & CMP: 548

• Upper breakout is 551 for going long and lower breakout is 540 for going short.  Trade only in direction of overall NIFTY trend.
• The momentum is wavy and so the direction of this stock cannot be trusted yet, so avoid taking long term positions.
  
• Jubilant Foods ट्रेंड त्रिकोण में है.  शोर्ट टर्म ही ट्रेड करें, अभी कोई लम्बे समय तक चलने वाला ट्रेंड नज़र नहीं आ रहा है. 

All posts related to Jubilant Foods

JUBILANT FOODS Daily NSE Stock Chart Technical Analysis

IVRCL Infra: Trend Triangle

IVRCL INFRA NSE Stock Chart Technical Analysis:

• IVRCL Infra is traveling within a trend triangle since mid-Feb, as is visible on the chart.  
• Current Close & CMP: 74.15
  
• The price has hit the upper line of the trend triangle today and stopped exactly there.  By the end of month the stock price will make a decision whether it is headed upwards or downards.
• The price has taken support of the 20 DMA
• The current formation is a set of corrective A-B-C Elliott waves and there is a possibility that the price might rise to 84 if it breaks out from above the trend triangle.  Get ready to trade this short-term gain if the opportunity arises. 
• No indication for taking a long-term position on IVRCL yet, trade it only for short-term gains.
  
• IVRCL Infra फरवरी से ट्रेंड त्रिकोण में चल रहा है.  अगर ऊपर की तरफ जाता है तो ८४ तक जा सकता है.  अभी लम्बे समय के लिए इस पर पोसिशन लेने का कोई संकेत नहीं है, तो शोर्ट टर्म के लिए ही त्रदे करें.

All posts related to IVRCL Infra 


IVRCL INFRA NSE Stock Chart Technical Analysis

Tata Steel: Trend Triangle and Price Channel

TATA STEEL Daily NSE Stock Chart Technical Analysis:


Tata Steel rose with the overall market today but the rise was half-hearted, there were less number of investors who were interested in this rise.

• Today's rise is unconvincing and I would not take positions in Tata Steel tomorrow morning, and wait for a trend to emerge.  
• Today a marabozu candle is formed but due to lack of overall trading interest in this rise, it doesn't seem sustainable.
• The stock price is traveling within its price channel of 578-701 since 6 months, so a break out in either direction can be enthusiastically traded.
• There is an important trend triangle and the price has attempted to return within it.  This triangle completes at 638, let's see how the stock behaves when it reaches this price point.
  
• Tata Steel आज ऊपर गया लेकिन वोल्यूम कम है इस लिए लगता नहीं है की लम्बे तक जायेगा.  वैसे भी त्रिकोण पड़ रहा है और भाव इसके इर्द गिर्द ही घूम रहा है.  अभी इस में पोसिशन नहीं लेनी चहिये जब तक कोई ट्रेंड सामने नहीं आता है.  अगर ५७८ से नीचे गिरे या ७०१ के ऊपर जाये, तो यह ब्रेक आउट ट्रेड किया जा सकता है.  

All posts related to Tata Steel


TATA STEEL Daily NSE Stock Chart Technical Analysis

Fedders Lloyds Corp: Falls Back Below Resistance

FEDDERS LLOYDS CORP. Daily NSE Stock Chart Technical Analysis:


FLC fell again today and closed at 77.65

Market Outlook:

• The price now seems headed downwards, should find support at 73.
• भाव फिर से गिर रहा है और रेसिस्टांस के नीचे चला गया है, अब ७३ पर सुप्पोर्ट मिलना चाहिए 

Technical Indicators:

• The price has fallen back below its diagonal resistance with a bearish engulfing candlestick pattern and the indicators are saying that it might not be possible for the price to climb above this diagonal resistance anytime soon.  Somewhere in the first week of March '11, the price will face a decision point at Rs. 74 if the price remains in the current triangular price range until then.

All posts related to Fedders Lloyds Corp


FEDDERS LLOYDS CORP. Daily NSE Stock Chart Technical Analysis

Indraprastha Medical Weekly: 1-5 Nov 10: Not Looking Good

INDRAPRASTHA MEDICAL Weekly NSE Stock Chart Technical Analysis:

Indraprastha Medical closed lower this week at 44.50 after opening the week at 45.70.

Market Outlook:  

• The market should go sideways next week. 
• Don't buy immediately, no signals yet.
• Good buy if it jumps Rs 55. 
• Exit / go short if it goes below Rs 43.

Technical Indicators:

• A trend triangle has formed.  The angles of which are at 47.50, we can see that the stock faced resistance at this point and dropped below.  
• The next decision making point is depicted by the blue dot on the chart.
• If the stock falls and remains below Rs. 43,.its a good opportunity to short.
• A double top has formed at Rs. 54.  If stock climbs above 55, its a good opportunity to go long. 

News (Fundamentals):

• Bad results with lower sales than last year and lower profits and lower earning per share show this is not a good time to enter this stock.  

INDRAPRASTHA MEDICAL Weekly NSE Stock Chart Technical Analysis

Reliance Ind Weekly: 1-5 Nov '10: Will Price cross Rs 1119?

RELIANCE INDUSTRIES Weekly NSE Stock Chart Technical Analysis:

This week ended on a sour note for Reliance Industries.  The week opened at Rs 1121 and fell to Rs 1062.65 but rallied back slightly to close at Rs 1105.70.

Market Outlook:  Rs 1119 is going to be an important decision making point for the price.  If price remains above this after 3rd week of November, its time to buy.  

Technical Indicators:

• The week ended with a Hanging Man Candlestick.  

• The price has also reached its point of 2 year old resistance trend line.

• 2 important lines of resistance and support dissect in the next couple of weeks at Rs 1119.  This is an important point to watch, keep a keen eye on it.  Any breakouts above this price are to be taken happily.

RELIANCE INDUSTRIES Weekly NSE Stock Chart Technical Analysis

3i Infotech Weekly: 1-5 Nov 10: Tough times for 3i

3i INFOTECH Weekly NSE Stock Chart Technical Analysis:

This week closed at Rs 67.05.  The chart above is showing data updated until 4th Nov only.  The candlestick pattern for the week is a shooting star

Market Outlook: The price should fall in the next week after two indecisive week.  Don't buy this stock as of now. Sell if it closes below 61 with no indicators showing that it'll return.

Technical Indicators:

• This week ended with a shooting star candlestick.  It's not exactly a shooting star but that is the closest way to describe it.

• There are lines of resistance and support which merge by end of December 2010, around Rs. 65-67.  

• By Dec end we should have a clear picture emerging of which way the stock is headed.  

News:

• A looming rumor of being acquired by Satyam Mahindra is a beam of hope for this stock.  If this news comes, jump in and buy immediately for a short term gain.

3i INFOTECH Weekly NSE Stock Chart Technical Analysis:

GSPL Rising: Price At All Time High

GSPL Daily NSE Stock Chart Technical Analysis:

GSPL is at an all time high since it listed in 2006.  The price broke through its previous high in mid-August 2010 and has remained up.

The CMP on 5 Nov 2010 is Rs 119.1.

Market Outlook:  The price will remain sideways with possibility of minor fall on Monday market opening, as the price rise seems exhausted when Mahurat trading ended on 5th Nov '10.  When the price touches the line of support, one can buy and go long (buy n hold).

Technical Indicators:

Price is at an all time high in the 5 years of it being listed on NSE.

The previous high is now acting as line of resistance, as is visible where the triangle forms.

There are two lines rising which are acting as support and resistance.  These lines merge in mid-2011, which could be a decisive time for the price.

News:

GSPC Gas, a subsidiary of GSPL, already has the largest distribution network of gas in urban India.

GSPL has bid for 3 pipelines - Malavaram-Bhilwara, Mehsana-Bhatinda, and Bhatinda-Nangal pipeline.  If it wins any of these contracts, the price is going to zoom.  (Source: HDFC research paper)

Chart Source: www.moneycontrol.com

GSPL Daily NSE Stock Chart Technical Analysis

Granules India: Price Range for Nov between 102 and 94

GRANULES INDIA Daily NSE Stock Chart Technical Analysis

The Granules India price closed on Thursday with a note of indecision about what will happen next.  

The price opened at 98.15 and rallied up to 100 to finally close at 98.  

Market Outlook:  

• The price should close above today's close in the next trading period, but not above 99.  If price returns after touching 99, there might be a short term opportunity to short this stock, based on confirmation from other indicators.
• The upper & lower limits of price in Nov '10 are 102 and 94.  Breaking any of these price limits could give important buy-sell signals

Technical Indicators:

• The Doji formation with its body in the lower half suggests heavy selling pressure, but this pressure is weak and the price should not fall back again tomorrow.
• A long term resistance line has turned into support, and vice-versa, after the breakout below the line on 29 Oct '10 as is visible on the chart. 
• We can see the upper and lower limits of the price for this month on the chart as visualized by the rectangle.  The price should play between these limits of 102 and 94 for the month and could give short term opportunities to make money by buying at line of diagonal support and selling at line of diagonal resistance.
• If price goes above 102 or falls below 94 with significant amount of trading, then buy above 102 and go short or sell below 94.  But this needs to be done if other indicators are also confirming these signals. 

(Analyzed on request of Srinivas, Hyderabad)

IVCRL Infras taking help of Support Line

IVRCL Infras Daily NSE Stock Chart Technical Analysis:

The movement has slowed down for the timebeing as the market is awaiting another move on this stock.

Today's market price is at Rs 155.55

Market Outlook:  The price should remain between Rs 164 and Rs 147 until Mid-November.  

If you are in a buy and hold with this stock, its been an unlucky run for you.  This is a good stock to play short.

Technical Indicators:

There is a long term line of resistance for this stock, running from Jan 2008 till date.  The price has tried to break this line multiple times, succeeding briefly once for a few days between June and July 2010, but fell back below this line since then.

There are 3 lines of support emerging from the market low.  Both of these were breached in May and Oct '10 after providing some support to the falling price.

The 3rd line of support crosses the long-term resistance in Jan '11 at a price level of Rs 158.

Keep an eye on any break of this support.  If it happens, the price may continue falling, with subsequent support at 142, 129 and 88.  If price falls beneath support, go short with a target of these support lines.

(Analyzed on request of Nandgopal, Mettur)

Reliance Communications: Lines of Support & Resistance + Long Term View

RELIANCE COMMUNICATIONS Daily NSE Stock Chart Technical Analysis:

Reliance Communication is moving sideways again with a few swings here and there.

It is facing resistance by a 1.5 year old trend line as is visible here.  At 174, there is a moment of decision and the price will either push below and go down, or go above and remain up.

If the market rises, the next points of resistance are 190 and 209.

Looking at a long-term chart, Reliance Communications seems to be set up for a big move soon.  Considering the company and the steed it belongs to, this move should be upwards.  The price could suddenly start rising. Keep an eye on the price levels for this stock.  Expect sudden and big moves.

Kinetic Motors Trend Triangle

Kinetic Motors Daily NSE Stock Chart Technical Analysis:


Kinetic Motors rose today back today after a week of falling, to form a piercing candlestick pattern.


The price opened at 38 and closed at 39.55.  During the day, there was some selling pressure as the price dipped to 36.8, but it quickly moved back during the 2nd half of the day and closed positive.


Market Outlook: Price should continue to rise tomorrow


Technical Indicators:

• Trend Triangle: The market remained within the triangle and if it rises tomorrow, it'll break out of the diagonal resistance
• Piercing Candlestick pattern with good volume: Positive signal
• RSI turning upwards from midpoint: Good signal
• Closing above 20 day moving average after closing below it on Friday: Positive signal
• Fibonacci support at 50% (Rs 37.77) retracement levels, tomorrow's support could be 61.8% (Rs. 40).

Airtel Gap-Up

Airtel Daily NSE Stock Chart Technical Analysis:

Airtel jumped up and was one of the big gainers along with NIFTY today.

The price opened gap up at 329, whereas yesterday's open was 328.  The price rose steadily throughout the day and closed at 335.3.

Market Outlook:  It is not likely that the market will be able to continue today's pace tomorrow, unless people jump in thinking this is a rally, in which case it might be positive tomorrow as well and slow down the day after.  In any case, definitely sideways.

Technical Indicators:

• The market formed a positive marabozu candle today, price rising throughout the day.
  
• The volume is quite low, even though the price gapped up and rose throughout the day.  Too many people didn't participate today, just a few people changed hands at higher prices which the market overall seemed to not consider very believable.
  
• Moving averages have converged and after 2.5 months, the 20 day MA is about to cross the 50 day MA.  That's a good signal.
  
• The price got support near Rs. 220, where it made a double bottom.  This is also a previous consolidation level of the market, and it is positive that the price didn't break through and went back up again.
  
• The price has broken a trend line triangle.  The diagonal should serve as a support line for the next 3-4 days.

NIFTY Gap-Up Today

S&P CNX NIFTY Daily Stock Chart Technical Analysis:

NIFTY created a gap-up today.

The index opened at 6092.3, a gap-up of a whopping 74.6 points!  The trend triangle that was discussed in Friday's post was completely ignored by the NIFTY today.  It jumped above both trend lines and closed at 6117.55.

Market Outlook:  Today's market jump might not remain sustainable unless the index rises tomorrow as well and the trading volume increases.  Don't go bonkers and jump into the market thinking this is a bullish trend, there is no confirmation yet.

Technical Indicators: 

• The index has taken support of the Fibonacci 78.6% after twice taking support from the 61.8% level.
  
• The only point of concern today is that the total volume traded was not only lower than the past 4 days when NIFTY was in a free wheelie downfall, but also lower than the past entire two months of Sep and Oct '10.  This is significant to note because though the market jumped up like a gymnast on a mat, it traded much lower than the average.