Saturday, October 15, 2011

Nifty Technical Analysis view for this week 17th Oct 2011.

Hi to all,

In the last week we have seen a good rally in Nifty, which started from 4725 and ended at 5150. Many of our investor’s friends where partying and probably they are ready to pump more money thinking we have BOTTOMED OUT.


Fig: Nifty Day Chart

So have the good days started or is it again just a temporary bounce? So our tradingkamai.com started looking in to technicals. Always remember there are 3 kinds of people in the market: -

• Bullish and optimistic.
• Bearish and pessimistic.
• The smart guy who waits for signal and confirmation to enter in to the trade.

The last section of people must have bought nifty above 4940 because of technical confirmation. If you remember our last week blog we have talked about double bottom formation click here to see the blog post http://tradingkamai.blogspot.com/2011/10/technical-view-for-week-10-14-oct-2011.html.

Now some people are thinking that NIFTY would not cross 5175 as it’s a strong resistance. So some of them booked profits on Friday, due to which we saw a decrease in open interest.
Now many traders / investors / fund houses are waiting for the green signal or confirmation for buying. The confirmation will happen when NIFTY closes above 5175 with good volume and sustains there for 4 to 5 days or it penetrates more than 1% above 5175 in intraday.
Courtesy :- http://www.veryicon.com

If the above goes true we must see 5300 level in coming days.

Now let’s go to something stock specific: -


Reliance has broken its 860 level resistance. This resistance was its last months (i.e. September 2011) high. This breakout is also supported with strong momentum in uptrend. This price pattern is showing fresh seed wave formation and is an indication of strong reversal for reliance.

This also signifies it has broken its bear journey which had started from 1065 to 712.


Fig: -Reliance Day Chart

So our thought on reliance hence forth is 888 is next resistance , in short term to medium term it can be between 900-950 and for medium and long term it can reach 1050-1100.

Earn 5 to 6 % return in coming week, our call B******** buy at *** and book profit at **** with stop loss at ***

Interested on the above call or interested in training on technical analysis give us a call on 09920115511 or mail us on kpg23in@hotmail.com / trading.kamai@yahoo.

View our following video on explanation of What isTechnical Analysis: -



See syllabus for Technical analysis training in Mumbai,India.

Please read our disclaimers before investing http://tradingkamai.blogspot.in/p/disclaimer.html

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