With recent volatile movement in NIFTY, it given some happiness to BEARS and BULLS are still feeling like IGNORED one, But is this a right path nifty going though, or it just a trailer, full move is still remaining?
Whom we can ask this questions?? let us talk with nifty now…………………………………….
NIFTY POSITIONAL CHART VIEW –
As we can see the chart we can clearly see that trend is highly volatile in recent past, and when such volatility arise in market, bulls and bears get confused with there positions, this part is till the interval time, picture can turn either way after interval, so just have a look at the important levels in nifty daily chart, can give you some clear view of upcoming moments..
1. Nifty at present trading at support level of demanding trend line, and able to give one green bar on chart at support, so sign of reversal from here is there, but still we cant confirm the reversal till we are not getting more two positive bars on chart, so waiting for 2-3 session more can clear the perfect picture.
2. Study the convergences on chart, recently we spotted the double positive convergence on chart in month of Feb. to March 2013, where we can see that after a 1st convergence signal nifty not able to reverse properly and after two week, it again created a divergence signal on chart, and that time it given proper reversal move which was from 5600 to 6230 almost 630 points one way.
Let see the current situation, again we can see that in last week trading nifty given divergence signal again, but still we need to wait for the confirmation of this signal, and we can say that this signal will get confirm once nifty able to give close above 5750-5800 level and after that we can see movements till 6100-6300-6700 also. but if signal not confirm then there are possibilities of more downfall also which can get support in a range of 5500-5600 levels, and this is the real support range of market, of its actual up trend.
over all study indicate that nifty trading on important support level, trading in a descending trend line channel, also giving some convergence signal, also made a rectangle chart pattern, so there are lots of things to notice as present, and our views says that if nifty able to close above 5750-5800 levels then only reverse move to see in market, because this can only given us a confirmation of trend reversal, downside 5500-5600 major support range if any how nifty not able to take support here also and if able to trade below this range for 2-3 trading session, then it can give us a indication of long term reversal in market trend which can produce 600-1200 points in nifty in coming time.