NIFTY OVERVIEW on 07/01/2010.

NIFTY OVERVIEW on 07/01/2010

Report Prepared by DEBABRATA BHATTACHARJEE

Email ID: imdb1@ymail.com / db.poton@gmail.com

Today, I am discus about recent position of the market. Here I get ‘NIFTY CHART’ for analysis. Nifty made a new high of the current trend which is stated from March 2009 after the break out of ‘X’ Horizontal line. Better to focus what will possibility of the market. The trend line ‘A’ provides the support of this uptrend rally. The Trend line ‘B’ provides support from July 2009. Similarly ‘B1’ (Parallel of B) line provides resistance from upside. Here price moves through the ‘B B1’ Channel. The trend line ‘Y’ (Semi-log) which started from 2003. This line took the major part in the chart. The points ‘L1’,

‘T1’, ‘T2’ are effected by the ‘Y’ line. This line could be playing the major role again in the chart. The extended ‘Y’& ‘B1’ lines are move around same level i.e. 5500. The horizontal line ‘W’ (5544) could be proved resistance. It is also the same level. So I think around 5500 level, NIFTY will face the major resistance. Very recent ‘U’ horizontal line (5300) resisted to the price. This line took major part around 2 years ago. The points ‘P1’, ‘P2’, ‘P3’ & ‘P4’ are resisted by ‘U’ line. After the breakout this level, then next level. Other side is support level. The Trend lines ‘A’& ‘B’ could be provide the strong support. But horizontal line ‘X’ (5190) is recent level. The 13 DMA (5183) is also around the same level. Important point, the price has left a ‘Gap’ (5238-5242). So the price could retreat of this level. The other support level in chart are ‘X1’ (4705), ‘X2’ (4521) & 50 DMA (5058), 200 DMA (4566).

13 DMA & 30 DMA lines are moving upward. This indicates the investor’s confidence have intact. The RSI value is 64.09. It is moves upward. This indicates the strength intact in the NIFTY.

Let’s Now I analyze the Fractal theory in the chart no 2. There are two similar patterns namely pattern 1 & 2. The pattern 1 is smaller and is made of points ‘a’, ‘b’, ‘c’….. ‘k’. The pattern 2 is larger in size and consists of the points ‘A’, ‘B’, ‘C’….. ‘I’. In the pattern 1, the point ‘j’ was formed at 150% of ‘h’& ‘i’ range. In the pattern 2, the point ‘J’ could be formed, if follows the fractal theory, is that 150% of ‘H’ & ‘I’ range i.e. 5507. Now focus to the point ‘k’ in the pattern 1 was formed at similar level of ‘iii’. If the price follows the fractal theory, in the pattern 2, the point ‘K’ should be formed at the same level of point ‘iii’ around i.e. 4367. 

At last my view about ‘Nifty’, could be reached the around 5500 level. Then Downside target around 4367.