You must read previous articles and
watch above chart carefully to understand this article completely.
Today’s outlook: -
Nifty has saved 5630 on last Thursday
but unable to cross 5730 resistance marks on Friday’s trade. Market was waiting
earning and guidance. It is coming that till now I am really disappointed with
those. I must say that I was expecting those disappointments. Take a note that I
am not saying any thing good or bad.
Optimism is saving the support of
5630 and the fear is causing for the failure of 5730 on higher side. In that
kind of development, nifty has formed H&S pattern but those will be
applicable only if it sustain below 5630. Big question is that will 5630 break?
I read many technical indicators on Nifty chart and found that a chance of
break below 5630 is very bright. If that happens then we may see some levels
near 5500 in coming few days. It will not be a one way blow so we may have some
intermediate support at 5580-5570 kind of levels.
MACD and RSI is giving signs of
weakness and this weakness can be concerning if it breaks 5630 levels. There can
be the possible consolidation range between 57300 to 5630. It is interesting to
see that market took support at 20 days moving average many times in past. Even
now 20 dma falling at 5630 only.
It not that only Indian market is
getting disappointed earning numbers. It is happening all across the globe. Prime
reason is that many stock prices are already higher in past few months of
trades. I have given emphasis on 1475 of S&P 500 in past few days but that
remains uncrossed yet. Now even S&P 500 has support at 1424 to 1418 levels.
Break of that may push some short term sell off. So I feel that we are on
critical week of trades.
As per individual stocks are
concerned then I can conclude that at least technology stocks are not
comfortable at all after Infosys earning. It can be only pharma stocks which can
have some defensive buying.
One must note that wave developments
are going with rising channel with a-b-c count only. If anything comes decisive
then I will plot it on my chart. There is another important event today and
that will be Reliance quarterly numbers. It will come after market hours. Technical
charts are suggesting for support at 808-805 levels.
For Indian market, nifty will look
for support at 5630 and for USA
Regards,
Praveen Kumar
