You must read previous articles and
watch the given chart carefully to understand this article completely.
Today’s outlook: -
Nifty has opened higher yesterday
but it was never above 5923 expect first second of trade. We have seen the
result of this failure in second half. Technical charts are showing that we are
still the shown downward channel. I have already said that this market will
give the outcome what is not looking like to come. You expect up but it will
come down, if you expect down it will go up.
We need to note that it is more than
a month that we are still trading near to 5900 levels. It took few attempts to
cross higher but failed every time. It has saved lower band too. At current
levels we cannot say anything confidently that it is going to give breakout or
breakdown. I am giving higher priority to the channel which it is forming on
the chart. With that downward channel support is also shifting lower. So we
need to see the levels of 5838 to 5823 as support band. Suppose, if market goes
below this support band then it will try to take a decisive down. I must say
that technical indicators had given buy and sell both in past few weeks but all
has failed. As of current formation, it is giving me a direction down but it is
not going down yet.
MACD and RSI are still trading with moving
weakness. I am giving some priority to 20 days exponential moving average. After
crossing higher above 20 EMA, it is stay above this only. Now if it breaks it
on the lower side then 4-5 days of downside it unavoidable.
Conclusion Nifty: We have not got the clarity over
US fiscal cliff situation yet. I have already said that market will not be
comfortable unless we see some decision in USA
S&P 500 – I have already discussed for
resistance at 1445 and a possibility to test 1400. It hit 1400 almost in the
last trading session. Take a note that it is still not strong enough to buy. No
solution is coming over US
Regards,
Praveen Kumar
