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Intermediate uptrend intact - Consolidation on the cards
Sensex (19420) / Nifty (5826)
In our previous Weekly report, we had mentioned that on the
Sensex daily charts, prices tested the upper trendline of the
pattern, which now resembles an Ascending Triangle whereas
in the Nifty Daily chart they have given a breakout of the said
pattern. In addition, we had mentioned that the two consecutive
trading sessions with upward gaps reflect continuation of the
up move, where immediate resistance is at the rising 200-day
SMA, which is at 18950 / 5689 levels. Any close above this
level would see the indices testing 19340 - 19575 / 5800 -
5874 levels. The week witnessed strong momentum, where
indices made a high of 19575 / 5872, which were close to the
mentioned levels.
The Sensex ended with net gain of 3.2%, whereas the Nifty
gained 3% vis-à-vis the previous week.
Pattern Formation
On the Daily chart, for two consecutive trading sessions,
we are observing a "Spinning Top" candlestick pattern near the
crucial resistance of 19574 / 5873 levels.
Future Outlook
Broadly, after a sharp rally for consecutive eight trading sessions
indices have faced resistance near january12, 2011 high of
19575 / 5872 and have formed two consecutive "Spinning
Tops". This candlestick pattern on the daily chart indicates that
the prior trend is losing momentum and, hence, a consolidation
or minor pullback of the previous gains cannot be ruled out.
On the downside, indices have support at 19154 - 18894 -
18683 / 5748 - 5671 - 5548 levels. However, the weekly trend
remains up and any move beyond 19576 / 5873 would lead
the indices to test 19900 - 20217 / 5920 - 6060 levels.
Traders are advised not to form long positions at current levels,
as Risk Reward would not be favourable. However, a Pullback,
if any, and a reversal near the support levels would give good
opportunities to trade on the long side.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Intermediate uptrend intact - Consolidation on the cards
Sensex (19420) / Nifty (5826)
In our previous Weekly report, we had mentioned that on the
Sensex daily charts, prices tested the upper trendline of the
pattern, which now resembles an Ascending Triangle whereas
in the Nifty Daily chart they have given a breakout of the said
pattern. In addition, we had mentioned that the two consecutive
trading sessions with upward gaps reflect continuation of the
up move, where immediate resistance is at the rising 200-day
SMA, which is at 18950 / 5689 levels. Any close above this
level would see the indices testing 19340 - 19575 / 5800 -
5874 levels. The week witnessed strong momentum, where
indices made a high of 19575 / 5872, which were close to the
mentioned levels.
The Sensex ended with net gain of 3.2%, whereas the Nifty
gained 3% vis-à-vis the previous week.
Pattern Formation
On the Daily chart, for two consecutive trading sessions,
we are observing a "Spinning Top" candlestick pattern near the
crucial resistance of 19574 / 5873 levels.
Future Outlook
Broadly, after a sharp rally for consecutive eight trading sessions
indices have faced resistance near january12, 2011 high of
19575 / 5872 and have formed two consecutive "Spinning
Tops". This candlestick pattern on the daily chart indicates that
the prior trend is losing momentum and, hence, a consolidation
or minor pullback of the previous gains cannot be ruled out.
On the downside, indices have support at 19154 - 18894 -
18683 / 5748 - 5671 - 5548 levels. However, the weekly trend
remains up and any move beyond 19576 / 5873 would lead
the indices to test 19900 - 20217 / 5920 - 6060 levels.
Traders are advised not to form long positions at current levels,
as Risk Reward would not be favourable. However, a Pullback,
if any, and a reversal near the support levels would give good
opportunities to trade on the long side.
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