Monday, 22 September 2014

NIFTY weekly analysis for 22 September’14 to 26 September’14


Elliott wave theory: we already got one dip last week. Now, it is again on re-test of 8181. Unless it closes strongly above 8181, do not buy. I am expecting expiry here and there at 8000 levels.  

Market cycle: INDIA VIX is running near 11 for the first time in history. A top can emerge very sooner. I cannot deny the possibility of 8240 on a move above 8181.

Technical indicators: MACD and RSI are growing with negative divergence. This is alarming. This is prime reason that I am advising strong caution.


Charting pattern: I always listen this factor and try to gives higher weight-age as its only and only price which pays in market. Charts are saying that as long we are above 7860-8000, we are bound to see higher levels. Above 8180, it can see levels of 8240 before forming any final top. 

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