Bank NIFTY & NIFTY looking bearish in near term

Bank NIFTY has broken the neck line of a bearish H & S pattern. Public sector banks look more weak on charts. Also private sector banks are showing signs of break down.

BANK NIFTY Daily chart

BANK NIFTY Fibonacci Daily Chart

NIFTY Daily Chart

The chart structure is indicating the more downside in the index with targets 12400 - 12112 - 11780 and 11500. NIFTY is also on the verge of breaking down of the similar bearish H & S structure. The break below 5930 would confirm with much lower targets. As we have updated in our previous blog for targets of 5790 further downside can be expected around 5640 - 5650 which is also 78.6% fibonacci retracement on daily chart.

So trade objectively and wisely with the consideration of own risk with amid volatility. The strategy would be to wait patiently for the right opportunity to unfold to probable profitable trade setups.

Raju V Angadi

 Equity Research Analyst.

 To know more about probable counts contact us back on rvangadi@googlemail.com

Disclaimer: This is just an view based on the research of individual. So kindly trade along with the consultation of your financial adviser, market trends, price action and own risk appetite considered while investing or trading in stock markets.

NIFTY near term outlook

Nifty forming a rising wedge pattern not able to cross the 6187 on closing basis for 3 trading sessions on the daily chart and have come down 100 odd points. A distribution is seen in few of the index heavy weights and  quiet a few broad based counters is well. Although early to call one can conservatively sell the index close below 6100 with a stop loss of 6154 for targets of 6020 - 5990 - 5920 - 5800. As swift correction can be expected.

NIFTY can test the 61.8% retracement of the move from 5477 - 6187 which is around 5780 - 5790.

NIFTY Daily chart

NIFTY Fibonacci Chart

convincing long positions can only be taken above 6187 spot close with targets of 6280 - 6400+ targets.

Note: NIFTY 6102 is the uptrend support zone of trendline. Fed policy meet on 22/05/2013 can be a global event trigger along with SBIN results 23/05/2013 to watch out.

So trade objectively and wisely with the consideration of own risk with amid volatility. The strategy would be to wait patiently for the right opportunity to unfold to probable profitable trade setups.

Raju V Angadi

 Equity Research Analyst

 To know more about probable counts contact on rvangadi@googlemail.com 

Disclaimer: This is just an view based on the research of individual. So kindly trade along with the consultation of your financial adviser, market trends, price action and own risk appetite considered while investing or trading in stock markets.

Bajaj Auto Outlook

Baja Auto after a down tick of 1.75% yesterday (15/05/2013) yesterday gave a two bar reversal technically closing at 1822 (1.92% higher). The board meet on 16th May 2013. The quarterly results expected tomorrow can be a trend changer for the counter.

Bajaj Auto Daily chart

Bajaj Auto Daily Fibonacci chart

The move above 1865 with higher volume will confirm the bull flag in the counter with a target of 2145.

Aggressive traders can go long either or dips or on current levels with a stop loss of 1780.

The short traders can only take positions below 1780 with sl of 1830.

The key technical levels to watch out for:

Support:             1820 - 1780 - 1700 - 1630

Resistance:         1865 - 1940 - 2010 - 2100 

So trade objectively and wisely with the consideration of own risk with amid volatility. The strategy would be to wait patiently for the right opportunity to unfold to probable profitable trade setups.

Raju V Angadi

 Equity Research Analyst

 To know more about probable counts contact us back on rvangadi@googlemail.com 

Disclaimer: This is just an view based on the research of individual. So kindly trade along with the consultation of your financial adviser, market trends, price action and own risk appetite considered while investing or trading in stock markets.

Break out seen in Grasim Industries

Grasim Industries has broken above the level of Rs. 3000 which was key resistance zone from past few months.

Although the rally of almost 12% from low of 2680 odd levels. The breakout above the resistance zone would now act as a support if held. There is a strong accumulation seen in the counter. This move can continue still 3200 odd levels. The channel line is showing structural upward move in the stock.

Short term traders can add on to the long positions on current levels with stop loss of 2965 and cautious levels can be 2980 If the break out turns to be a false move.

Grasim Industries Daily chart and Fibonnaci retracements

The key support zone for the entity holds at 300 - 2980 - 2965 and resistance levels are 3090 and 3200.

So trade objectively and wisely with the consideration of own risk with amid volatility. The strategy would be to wait patiently for the right opportunity to unfold to probable profitable trade setups.

Raju V Angadi

 Equity Research Analyst

 To know more about probable counts contact us back on rvangadi@googlemail.com

Disclaimer: This is just an view based on the research of individual. So kindly trade along with the consultation of your financial adviser, market trends, price action and own risk appetite considered while investing or trading in stock markets.