Nifty spot Daily Chart Technical View by Dhawal Joshi

>> Sunday, December 21, 2008

This article is written by Dhawal Joshi.

Daily chart has given trend line breakout which suggest me Bull steam in the market is still their. I am in the opinion of that we may see 3240 (high of 5 – November – 2008) in near future why because if you have noticed we have seen good amount of buying from FIIs (god of the emerging Market) and I have not seen too much of shorts in the market so over all trend is up as far as Intermediate trend is concern.

Although I should mentioned here is that Friday's candle stick has formed spinning Top (The real body of the pattern is white and small and The upper and lower shadows are longer than the real body's length) which suggest some indecisions in the market so I suggest go long above 3106 (High of Friday) or above 3118 with stop loss of 2995.

I want to informed those who tracks technical please do not avoid Friday's Spinning Top because it is a warning about a potential change or interruption in trend. So please those who are a Trader please watch out for 3106-3118 (I prefer 3118) for any possible longs in the market.

Conclusion:- One may think here that I have given both Bullish as well as Bearish view in the market , yes you are right why ?because if you see chart pattern it is Bullish (Trend line Breakout) and Friday's candle (spinning Top) has warned of Trend change after Long rally.

Nifty Spot Bullish above 3106 – 3118 (I prefer 3118) support at 2995 (based on 30 Minutes Intra Day chart) Resistance at 3240 for Near Term.

Credits go to Dhawal Joshi. He has a good insight in markets. He writes on