OM NAMO BHAGAVATHE SREE RAMAKRISHNAYA
Good morning. Nifty ended on 29th August 2008 at 4360.00 there by loosing 32.55 points over previous week ended on 22-8-08close.In my last write up I mentioned that “Hence it may be presumed that Nifty after reaching 4394 levels which is the middle band value, most likely to bounce back see some upside, before resuming the downward journey.”
Let us examine the movement of Nifty from 18-8-08 to 2-9-08
Date Open High Low Close
Good morning. Nifty ended on 29th August 2008 at 4360.00 there by loosing 32.55 points over previous week ended on 22-8-08close.In my last write up I mentioned that “Hence it may be presumed that Nifty after reaching 4394 levels which is the middle band value, most likely to bounce back see some upside, before resuming the downward journey.”
Let us examine the movement of Nifty from 18-8-08 to 2-9-08
Date Open High Low Close
08/18/2008 4430.70 4447.40 4379.85 4393.05
08/19/2008 4393.10 4393.70 4316.55 4368.25
08/20/2008 4365.45 4434.90 4365.45 4415.75
08/21/2008 4416.20 4418.55 4271.30 4283.85
08/22/2008 4283.85 4337.00 4248.00 4327.45
08/25/2008 4317.95 4398.80 4317.95 4335.35
08/26/2008 4335.20 4345.05 4283.30 4337.50
08/27/2008 4336.85 4364.25 4282.65 4292.10
08/28/2008 4290.75 4304.50 4201.85 4214.00
08/29/2008 4230.60 4368.80 4230.60 4360.00
09/01/08 4356.10 4365.00 4281.35 4348.65
09/02/08 4358.85 4522.40 4343.10 4504.00
As is evident from the above Nifty touched 4393.05 on the very first day and went down again went up and from there went down again, witnessing sea saw movement.
Having examined the nifty movement, let us try to analyze the likely behavior of Nifty in days to come.
Let us examine the Nifty Daily Chart
Having examined the nifty movement, let us try to analyze the likely behavior of Nifty in days to come.
Let us examine the Nifty Daily Chart
The Nifty was up sharply on the last tradign day of the week. On the opening day of the week Nifty was slightly down and later witnessed good rally of around 155 points. The bar on last day is both spike and outside day. The premier stochastic indicator started turning up without entering oversold zone.
Let us examine another nifty chart
The short term moving average is oevr the long 
term moving average and the averages are in divergent slopes. The long term average is sloping and the short term average is sloping down. The
Chande momentum oscilator is moving up again and did not reach the over bought area. The interesting factor is Inertia did not cross the Zero line, and turning down. The Nifty started the journey from Lower band of Bolinger Bands. The move will reach the upper band. The present value of Upper band is 4632.77.
Based on the above, it may be prsessumed that Nifty may see some down side immed -atley and later is likely to touch the upper band of Bolinger. After touching the Upper band of bolinger Nifty may continue the down journey again. The long term out look as of now turned bearish again.
Regards
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