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NIFTY WEEKLY CHART STUDY AHEAD OF EXPIRY FOR APRIL 2014

An investor watches the share index at a local share and stock market in the northern Indian city of Chandigarh There is an old saying on Wall Street that the market is driven by just two emotions: fear and greed. Although this is an oversimplification, it can often be true. Succumbing to these emotions can have a profound and detrimental effect on investors’ portfolios and the stock market. Many people says retail investor still not earning from the market, then what is the reason behind it???? Is it fear or greed??? Fear pushes investor sentiment far below fair market value. Conversely, greed pushes investor sentiment far beyond market value, to the upside. Essentially, you want to be buying when others are selling, and selling when others are buying. Now here what happen with retail investors – while there is fear in market and price is at bottom level, we fear to enter into stock, {it’s also called a value investing at bottom levels}. When markets are topping we are always greedy for more upside, and this make investment at higher levels {which is also called a growth investment}. To overcome from this kind of emotions, investor always have to think about, value investing at down level and growth investing at higher level, and most important is assuming time factor for this. Simple formula to gain from market is find the good stock which are consolidating for long time period, and once they break the consolidation range then invest your money for timely returns. As we mention last week that, nifty is having a good support in a range of 6650-6700 range, till this support not broken we can see bounce, and just see exactly happen like that, market able to bounce from 6665 it able to made till 6783 level. As per the current chart development we can see that, market taking support on every fall. Even there is a development of “RISING THREE METHOD” on chart which hint us the bullishness of market, because such pattern found when market trend is bullish. Even with rsi it has given a signal of “POSITIVE DIVERGENCE” on chart now, also rsi is having a scope for up move and price is also trading near to recent high level, so at this point price will try to make a new high, and then after with rsi it can create a signal of “NEGATIVE DIVERGENCE” or even “BULLISH NEGATIVE DIVERGENCE” also. So overall study indicate that nifty is having a good support level at 6650 now, till the time we can see day’s close below this level we cant expect a fall in our market, if price sustain here then upside it can try to hit 6820-6830 level and if able to close above this range then it can give up move till 6950-7000 level in coming days.

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