OM NAMO BHAGAVATHE SREE RAMAKRISHNAYAGood morning. Starting this week I wish to post my views on Nifty on weekly basis and selected stocks on daily basis, of course based on Technical Analysis. If you find any mistakes in the opinions expressed here, the sole responsibility is my ignorance, and if you find them to be interesting the total credit goes to the masters who invented these techniques and made them public for the use of investing fraternity.
The Nifty posted gains for the week ended 8th August 2008 closing at 4529.50 gaining 134.15 points over previous week close. The last two trading days of the week witnessed a downward swing posting lower highs and lower lows. Having considered the situation let us try to analyze what is in store.
The important long term moving average of Nifty is at 29 days, the simple moving average, is placed at 4198.23, and the important short term moving average of 15 days is placed at 4378.19. The short term moving average is above the long term moving average; both the moving averages are trending up. The price is turning down and heading towards the moving averages. On the last two trading days of the week, the volumes are also reduced.
The Chande Momentum Oscilator which is an excellent over bought over sold indicator is yet to enter over bought area, and inertia which depicts long term trend is moving up and yet to cross zero line. This indicates that there is some more steam left in Nifty, with probable upside. The likely target may be 4698.48. When Nifty reaches this area, it is advisable to adopt wait and watch approach.
1 comment:
congratulations on ur new blog and the associated views on nifty.its very intresting to go thru ur post as we come to know about new indicators like chande,inertia etc.a educational section would be welcome.all the best and have a smooth sailing.i too get to see 4615/4678 on nifty.more or less we are in sync.Once more all the best in your new venture....
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