For the week ended 16th January 2009 the spot nifty ended at 2828.45 thereby posting a loss of 45.55 points compared to previous week close on 9th January 2009. The Satyam episode broke out during the first week of January. The market almost remained weak. Now the question is what will be the likely behavior of spot during the next week?. Let us try to address this with the help of few technical charts
Let us examine the spot nifty చార్ట్.

The spot nifty reached the lower band of bolinger on 9-1-09 and started it’s upward journey from lower band on 14-01-09. As the tenet says, the move started at one band will terminate at the other band. Taking this, the Nifty in probability will touch the 3173.00 area which is upper band value as of now.

The spot nifty touched the lower band of projection bands and started the upward journey. The r-squared which indicates strength in the trend is moving up, crossed the critical level there by indicating that the up trend is strong. The upper band value of projection band is 3045.00.

Considering all this, I am of the opinion that Nifty is very likely to move upwards in days to come and meet the above mentioned targets.
Regards
Subrahmanyam

OM NAMO BHAGAVATHE SREE RAMAKRISHNAYA

For the week ended 16th January 2009 the spot nifty ended at 2828.45 thereby posting a loss of 45.55 points compared to previous week close on 9th January 2009. The Satyam episode broke out during the first week of January. The market almost remained weak. Now the question is what will be the likely behavior of spot during the next week?. Let us try to address this with the help of few technical charts
Let us examine the spot nifty chart

The spot nifty reached the lower band of bolinger on 9-1-09 and started it’s upward journey from lower band on 14-01-09. As the tenet says, the move started at one band will terminate at the other band. Taking this, the Nifty in probability will touch the 3173.00 area which is upper band value as of now.

Om namo bhagavathe sree ramakrishnaya
Hello all. Happy new year 2009( sorry for the delay). As I was busy with some family matters could not keep posting in blog. My sincere apologies for the same.

With Satyam episode, the nifty crashed and fell like the proverbial nine pins. If I am not mistaken, Satyam will not be in Nifty and Sensex starting 12th Of January 2009. With the help of technical analysis, let us try to examine and see what the charts foretold regarding market behavior.

Let us examine the spot nifty chart.

On 17-12-2008 Nifty touched the upper band of Bolinger, touching a high of 3076.20 and started it’s downward journey from upper band. The move started from one band will end at other band is the tenet. The Nifty touched the middle band on 26-12-08 and from 29-12-08 started towards upper band again. It touched the upper band again on 6-1-09 and on 7-1-09, the Satyam episode broke out.

On 12-12-08, the Money flow index started it’s downward journey from over bought level, and breached the 80 line on 16-12-08 thereby very clearly indicating that the market is in over bought area. The money started flowing out of market is clearly indicated by that.


The R-squared which shows the strength of the move started the downward journey on 19-12-08 and kept on going down clearly indicating there is no strength in the subsequent move. The R-squared never crossed the critical level during the short term upswing.


Let us examine some over bought over sold area indicators.
On 22-12-08, the nifty made a top outside the upper band of envolps, which is clear indication of over bought area.


On 2-1-09, nifty touched upper band of projection band which generally acts as over bought area.

Based on the above, it is very clear that Technicals have given an indication that the market likely to react well before the satyam episode.

On 17-12-2008 Nifty touched the upper band of Bolinger, touching a high of 3076.20 and started it’s downward journey from upper band. The move started from one band will end at other band is the tenet. The Nifty touched the middle band on 26-12-08 and from 29-12-08 started towards upper band again. It touched the upper band again on 6-1-09 and on 7-1-09, the Satyam episode broke out.