NiftyforAll: Weekly Review

Saturday, April 18, 2015

Weekly Review - 20.04.2015

Dear All,

Nifty ended at its lowest levels in the past two weeks as selling pressure extended for the third straight session. The Nifty finally closed at the day's low at 8606, down 100.70 points or 1.16 per cent on Friday.

Equity markets remained under pressure for the third consecutive session, and analysts across Dalal Street advice caution going into next week as benchmark indices could slip further from the current levels.

"The market is clearly weakening and you will have several more days of such sharp falls next week," says Ashwani Gujral, Fund Manager. Midcaps, which are yet to show sharp decline, may well come under the hammer, he adds.

"Every time there is some saving grace, but this time everything seems to be weakening together and that should lead to a fairly strong correction. So if you cannot take short positions, do not enter and move to the sidelines," he adds.

Gujral further cautions that investors should not go and buy on the dips because this time the dip could be hard. This could be because the way the market is reacting, chances are Monday morning on the back of good results you may have a 50 point gap up and then the sell off starts.

Meanwhile S&P dropped 1.1% on Friday, its biggest decline since March 25. Equities lost ground after industrials Honeywell International and General Electric took hits from the strong dollar, while concerns over new trading regulations in China and Greece's place in the euro zone dented sentiment.

>>> Nifty Daily - Posted on Last Weekly Review <<<

>>> Click the chart to see on full screen <<<

Last Week it was a clear sign of break out from RSI, as Price at the edge of an important resistance 8794.

>>> Nifty Daily - Happened & Yet to <<<

>>> Click the chart to see on full screen <<<

Crossed 8794, but unable to hold aboe it. Price and RSI are reversing after a break out. Almost a 250 Points correction from the high of 8844.

>>> Nifty Hourly <<<

>>> Click the chart to see on full screen <<<

Its a clear picture - How Price was traveling so far with break out. But the current break out - losing its control after a 250 point correction. Lets wait for more confirmation to move ahead.

>>> Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<

8557 and 8489 may support the bulls. Channel support also looks important at current juncture. Need confirmation on either side to move ahead.

>>> Bank Nifty Daily - Posted Last Weekly Review <<<

>>> Click the chart to see on full screen <<<

Last weekly review - Bank Nifty Daily chart - got a clear support from the channel and bounced back.

>>> Bank Nifty Daily - happened and Yet to <<<

>>> Click the chart to see on full screen <<<

Clearly resisted from the Head and Shoulder Neck line, Hence the sell of was so heavy and pushed down alomost 700 Points. We Have Booked out Long near 19000 with 1000 Point Profit. So now again the channel or the middle levels support should rescue the Bulls once again. Lets see it more clear on Hourly chart.

>>> Bank Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<

So its clear why Bank Nifty had this much sell off last week, Lets also see whats the options left for bulls to recover.

>>> Bank Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<

So above hourly chart, suggest Cross over still not yet turned negative. So, if price able to hold the supports given on chart, possibly may give a reversal. On the other side, if the bottom gets breaks, then fall to continue.

>>> ALBK - Posted on 08th Apr, 2015<<<