Market Outlook 19 January onwards and calls.

>> Monday, January 19, 2009

Nifty View on Weekly Chart

Nifty weekly chart has formed “Hammer “ which suggest some amount of pull back in market in next week but in addition to this if we talk on intermediate term then Nifty has formed “Symmetrical Triangle Pattern” pattern which has given bearish breakout and below 2700 (on closing basis) we may see 2307/2260/2074 in short term. Upper side looks remote at this juncture and Trader should use every rally to exit their long position. Weekly RSI is in neutral region, Stochastic is exhibiting negative region and MACD has given positive divergence.

Support:- 2755/2700 (Major Support)

Resistance:- 2878/2891/2918

Nifty View on Daily Chart

Nifty EOD chart has formed “Long white candle “ which suggest bullish trend to continue in coming days and “Double top” has formed at 2835 level above this we may see some bullish formation on chart. Like weekly chart, Daily chart has also formed “Symmetrical Triangle Pattern” which suggest bearish formation for intermediate term but only below 2700-2695 level. Stochastic and RSI is exhibiting positive divergence and MACD has given Negative divergence.


Resistance:- 2835/2853/2867

Nifty January Future (2815)

NF has formed “Double Top” at 2826 level on daily chart. Above 2826 it may test 2850/2875/2889 where has support formed at 2779.

Reliance Industries (1217)

Stock has potential to move up to 1275-1290 level (intra Day) and very strong support formed at 1181 level on closing basis. 1255 is a level where stock will form very bullish break out on channel line and sustain above this we may see 1325 (positional swing Trade Target)

Trade with Positive Bias.

SBI (1164)

Stock has formed “Double Top” at 1177 level sustain above this it may test 1191/1210 level and trend line support formed at 1150 Level.

BHEL (1404)

Stock has formed “Double Top” at 1410 sustain above this it may test 1445 and support formed at 1382.

Tata Power (773)

Stock has formed “Double Top” at 777 above this it may test 800/815 and support forms at 758

Gail (208)

Stock has formed “Morning Star Pattern”. Above 210 it may test 221/224 and support formed at 202.

Moser Baer (68)

Trade with positive bias above 68 with stop loss of 65.50 Target 74/76

Those who can not keep adequate Stop Loss please do not trade in my Calls.

By Dhawal Joshi