Monday, January 12, 2015

Resistance @ 8364, 8484 & 8550

Dear All,

Exceeding the expectation of a marginal improvement after contracting 4.2 per cent the previous month, India’s industrial output grew 3.8 per cent in November, showed the Index of Industrial Production (IIP) data released on Monday. The rate of retail inflation, as measured by the consumer price index (CPI), meanwhile, rose to five per cent in December from 4.4 per cent in November.

On the retail inflation front, urban areas recorded a higher rate, at 5.3 per cent, than the 4.7 per cent in rural parts. Food inflation edged up in December to 4.78 per cent from 3.14 per cent the previous month. A possible explanation for the rise in food inflation could be the full impact of a sub-normal and regionally skewed monsoon being reflected now.

The latest data on inflation seem to justify the Reserve Bank of India’s (RBI’s) position that the recent moderation in inflation is transitory in nature and could reverse. However, with inflation below RBI’s January 2016 target of six per cent, there could still be some clamour from industry for a reduction in the policy rate. The central bank might have room to do so after the Union Budget.

>>> Nifty Hourly Chart - As Posted on Weekly Review <<<

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

On Last Weekly Review - mentioned that 8300 & 8364 as a Good resistance to cross. Today Nifty crossed above 8300 and closed near 8326. Lets see whats next.

>>> Nifty Hourly Chart - Happened and Yet to <<<

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

If 8364 able to cross then possible for nifty to move towards 8484 & 8550. Still the Trend remains sell on rise.

>>> Bank Nifty - Hourly Chart <<<

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

Above chart looks like an IHS - But effective only if able to cross above the drawn channel. At the same time the current upmove looks like an a-b-c corrective upmove, where it finds resistance @ 19006 and 19145. Hence its a sell on rise as given on chart. Lets Wait and See. Cheers!!!