Nifty Daily Chart Analysis (2849)

EOD chart has formed “Bullish Engulf Pattern” with “Hanging Man Pattern” on Friday. We are stick to same view as we advocated last week, Nifty is bullish above 2869 level on closing basis. Currently Nifty is well above its 13 EMA(2816) and 34 EMA(2867) which suggest there is some amount of Bull steam is left for near term although that doesn’t mean that market is bullish , for intermediate term outlook is still bearish unless and until if closes above 3147. Currently trend line support exist at 2800. Daily RSI and MACD is exhibiting positive divergence where as Stochastic is in over bought region.

Support:- 2841/2827/2815

Resistance:- 2929 /2953

By Dhawal Joshi

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Market Outlook 19 January onwards and calls.

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.

Support:-2800/2782

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

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Market Outlook 12th Jan to 16th Jan.

Daily chart

Nifty has broken trend line support of 2910 and after 9 September 2008 only twice Nifty has broken 55 EMA and again started trading below that. Nifty has Major support at 2747 if it breaks on closing basis then we may see October low (2252) again in short term. Market will be bullish only above 3065 which is 55 EMA. Currently all indicators and oscillators are in negative zone and by looking at all this evidence upper side movement looks very remote and do not hold your longs if breaks below 2747 on closing basis.

Daily Chart Support:- 2747 on closing basis

Daily Chart Resistance:-3065 on clsing basis

Weekly Chart

Nifty has formed double bottom on weekly chart at 2810 level which will worked as a strong support for longs. Weekly RSI, Stochastic is in negative zone and MACD is in positive zone. By looking at weekly chart it looks like there is some amount of consolidation faze is on and moving northward is quite remote like daily chart. One thing to note here is 13 weeks EMA which is 3053 level will work as a good zone for longs. After 8 august 2008 Nifty has tried so many times to cross 13 Week EMA but failed in all time.

Weekly Chart Support:-2810 on closing basis

Weekly Chart Resistance:- 3053 on closing basis

Conclusion

Nifty has two major support on closing basis i.e. 2810/2747 and Major Resistance on closing basis is at 3053/3065 either side breakout will give us continuation of trend.

One more conclusion is if Nifty breaks below 2810 but remain above 2747 it indicates start reducing your long position and be cautious.

Happy Trading to All.

Dhawal Joshi

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Satyam did Satyanaas

Satyam did Satyanaas

Yesterday I saw all business celebrity and politician talking about that we should take firm step to stop all this kind of fraud but why now? We have habit of suffering and experiencing from last so many years whether it is 26/11 mumbai attack or Raju’s attack on investors. I simply not getting why only Raju is main culprit. According to me main culprit is PWC (Price water – Auditor of Satyam) should be blame more than Mr.Raju. They have not checked bank certificate bank statement for tallying accounts? My answer is yes they have checked but it is cumulative fraud. PwC had audited about 139 companies in India in the last fiscal. Of this, 97 are listed and 45 are part of BSE 500 Index. what about them? How can they allow such a huge fraud. Next time when I see fundamentals of any company I will first check auditor and if there is PWC i will skip that company. Why we have habit of learning lession from mistake? Why we are not believing in “prevention is better than cure”? why we have habit of forget past?

In 2007, ICAI had found partners of PwC guilty of professional negligence in underproviding for non-performing assets in the now-defunct Global Trust Bank (GTB). But this was only after RBI had blacklisted the firm when a string of irregularities surfaced at GTB. In July 2006, PwC’s Japanese affiliate Chuo Aoyama was handed a two-month ban on auditing by Japan’s Financial Services Agency, for allegedly certifying false accounts of consumer products major Kanebo. (Source ET)

I need answer from Mr.Raju and PWC What about uncertain future of 53,000 employees of Satyam.

My appeal to all trader please avoid trading in this scrip irrespective of Long or Short.
Satyam made a low of 11.50 odd today and is trading at Rs 21 now.

This article is written by Dhawal Joshi.

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