Wednesday 22 May 2013

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.

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