/ SHREE // TechnicalResearch For the Coming Week 27thJan 2014 NIFTY Nifty for last few weeks has been trading in a broad trading band of approx 220 points( 6359 / 6139) , thus exhibiting volatility and choppiness, Nifty has also formed a descending triangle / pennant it could not close higher and outside this pattern, the base of this triangle is at 6139. Nifty is trading in a downward sloping channel and it has its higher and lower band marked at 6321 and 6058 respectively. On weekly chart Nifty has formed a inverted hammer and this is a bearish sign, a close below 6139 will be a short term trend reversal signal and will straight away pull Nifty lower to test the 200dma at 5972. Nifty is likely to complete the formation of ongoing Bearish H&S pattern its neckline will be at 5972 here the 200dma is also placed a close below this will be a negative sign as it will then start its journey downwards to test the pattern targets which are near the gap area of 5802 and 5543. Nifty can only turn positive above 6359. All the major indicators are likely to turn weak. Hence in the coming week Nifty will trade with very high volatility,choppiness,weakness and will face stiff resistance and selling pressure at higher levels. NOTE : On Monthly chart Nifty has formed a rising wedge this is a big concern and it suggest that Nifty will give a sharp correction once this wedge matures in near future. Support : 6223 / 6171 / 6139 / 6058 / 6030 Resistance : 6289 / 6307 / 6327 and 6359 Bias : Weak sell on rise Trading range : 6321 / 6359 ..... 6415 6171...6129 / 6030 ... 5972 Trades for Nifty 1) Sell target 6195.... 6171 and 6139 stop at 6331 2) Sell below 6231 targets 6171 / 6139 and 6030 stop at 6307 BankNifty On daily chart Bank Nifty has formed a downward sloping channel and it has its target set at 10309 and below. It is in process of forming a bearish H&S with neckline line at 10410 on daily chart, if this pattern comes true then the gap present at 9238 will get filled ( this will happen in near future). Bank Nifty has closed below all the major averages and it has now just one important support in form of 100 dma present at 10838 on the downside. Bank Nifty has been forming Higher highs and Higher lows the previous higher low is at 10410 a close below it will be a trend reversal signal. On weekly chart BankNifty has formed a two gravestone dojis indicating the prevailing weakness to continue A close below 10838 will pull it further downward towards 10410 10229 and 10159. NOTE : BankNifty can only turn positive above 11198. Bias : Weak / Sell On rise Trading Range : 11198 10738 / 10410 / 10229 / 10159 Support : 10838 / 10638 / 10410 / 10225 and 10159 Resistance : 11017(12dma) / 11143(200dma) and 11198 Trades For Bank Nifty 1) Sell on rise target 10838 / 10410 and 10229 Stop at 11145. 2)Sell below 10838 target 10410 / 10229 and 10159 stop at 11133 1)Albk : Sell/Sell on rise target 83.90/82.15 stop 89.25 2)Bankofbaroda:sell below 595 target 566 stop 609.50 3)Bankofindia:sell below 226.30 target 208.55 stop 233.55 4) Bhartforge : sell target 329/318 stop at 353.15 5)Icicbank: Sell target 1012.95 / 958 stop at 1079.55 / buy puts with above targets 6)Jswsteel : Buy lower puts can correct sharp target 908 7)Pnb : Sell below 575 target 545 / 532 stop at 591 8) Relcap : Sell below 337 target 318 can even slide to 299 stop at 345 Prepared by : Jai B Solanki Technical Research Analyst / Business Associate MOSL Jaibsolanki.ta@gmail
Posted on: Sun, 26 Jan 2014 15:50:30 +0000
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