NIFTY Analysis on 28th April 2014

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It's very difficult to predict the movement of an Index when it's trading around it's all time high. Especially when everyone is awaiting for a major event like general elections. There are many speculations built around the new government. It's really tough to assess the minds of 810 million voters with sample surveys of few hundreds of thousands. India is a country of most complex demographics on earth. Traders and investors should be very very careful while betting their money in such times.

Nifty has formed a bearish engulfing pattern on Friday and the supporting trend line shows a support around 6746. This is a crucial support zone. If this level is broken with volumes at closing of today's trade we can assume that the Institutional liquidity has come to an end till the results. Traders can then initiate short positions for a target of 6690. 

MACD and CCI indicate a sell where as RSI is neutral. Long players should wait for a white candle signal in daily chart. Short players keep a stop loss at 6783.

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