Nifty poised @ 200 DMA

The Nifty is again approaching 200 DMA. The market rallied a long way today but closed below 5700. Aclose above 200 DMA is crucial for further up side.

Sun TV may breakout

Sun TV has taken a beating for the past few weeks. Howveer, the stock has gained for the past five successive trading sessions. The stock is on the verge of downward trend line and if the stock close above the trend line then it may move further up.



The stock is also poised at its 50 DMA and if it doesn't face resistance at this juncture then it may register more gains.

Down trend lacks strength

The ADX indicator reflects the strength of the overall trend. Since red line is going steep bears are taking control but ADX value, i.e. grey line, is still less than 30, which means that downtrend will not be sustained for long. Until and unless ADX value moves up dramatically, bear hug may not last for long.

Nifty @ crucial support

After ending at a three-week low level Nifty is at a crucial trendline support. It has bounced back four times on previous occassions. If it drops below from the current level then it may go down all the way to February low.

Nifty support @ 5343

Nifty is heading towards a crucial support level of 5343. Its a long term support and Nifty may witness some bounce back from this level.

IT stocks - Head and Shoulder

CNX IT has formed a head and shoulder pattern on weekly chart. This is a bearish pattern and if the indices falls 2-3% below the neckline, the IT stocks may witness selling pressure. The volumes too have been dwindlnig since the formation of the left shoulder. This also confirms the reversal move.

Nifty found crucial support

Despite correcting for a major part last week Nifty still managed to close in an upward channel. Though, market scenario is getting pretty volatile but still Nifty may not move down from this range immidiately.



Despite heavy selling of the past week, Nifty is still moving in an uptrend at weekly level. This indicate market is still finding some strength to close at crucial support level.

Nifty in a correction mode

Nifty slipped further today and closed even below its 50 DMA. It was a sharp down move. The MACD too has slipped below positive range. Let's see if pullback rally happens tomorrow. The gap while going up still exists.

Nifty below 200 DMA

Nifty has slipped below 200 DMA and may now target 5600 level.

Maruti - Momentum missing

Maruti is facing a strong resistance at current level. It failed to breach the 200 DMA twice earlier. This time too it has not succeeded in moving above 200 DMA so far.



The ADX indicator of Maruti reflects that the undercurrent of the stock is not strogn enough at the moment. The ADX value is below 20 and needed to cross at least above 30 to signify any meaningful momentum. The +D too slopes downward. Maruti may move sideways or drop down again.

Breakouts !

Hathway has recently crossed 50 DMA line that was acting as resistant for past 5-6 months. Volumes are improving. MACD crossover is giving bullish signals as well.



Tata Chemicals had a breakout from the down trend line recently. The stock has moved above 200 DMA as well with spurt in volumes. The MCAD has also turned bullish.

IT Stocks - RS Rating

In the IT stocks space, HCL is having a good run this year on the Relative Strength (RS) basis. It has beaten both Infosys and TCS with its performance. TCS stock is also looking good Infosys is lagging not only to HCL and TCS but to Nifty as well with its packlustre performance this year.

YTD Gain/Loss:
Infosys = -15.8%
TCS = 2.93%
HCL Tech = 14.3%

Nifty - Which way to turn?

NIFTY is moving in a range of 5700-5900 at a broad level over past few days. The rangebound trade may continue for some more time. The next resistance is coming at above 5900 and the immidiate support is at 5600. Which way it will turn?



Nifty is moving in an up trend line at long term level and long term trend line support is seen at 5400. Nifty is still some level above that, whereas it is hovering at around 5900 and may breach it any of these days. The chances of Nifty going up are relatively more than it going down, ceteris peribus.

Birla Money - Consolidation @ 50 DMA

Birla Money has popped up above 50 DMA after a long time. The 50 DMA was acting as a resistance. The stock is now consolidating at current level. Though volumes are negligible but any up move will take the stock towards 200 DMA.

VST - New High

VST Industries broke away from a resistance around Rs 650 few days back. The stock has really shot up since then.

Nifty @ 200 DMA

Nifty witnessed another day of selling pressure today. The stock closed at 5725 and found support at 200 DMA today. It will be interesting to see if Nifty takes suport at this level tomorrow or moves down further. The weekly chart below suggests down move.


Nifty has been moving in a channel at weekly level and is likely to follow the trend this week as well. This means more selling pressure will be seen. The AD line below further reinforces this belief.


The Accumulation Distribution Line or AD Line is a volume-based indicator designed to measure the cumulative flow of money into and out of a security. A downtrend in the Accumulation Distribution Line suggests underlying selling pressure that could foreshadow a bearish reversal on the price chart. The AD line has again started to move down. The market is witnessing more outflows at the moment.

TCS - Strong uptrend

Tata Consultancy Services (TCS) is moving in an up trend line for the past one year. The stock has registered almost 100% gains and looks good for more. The decisive support seems at Rs 1050.

Suzlon: Turning around

Suzlon has broken out of downward trend line. The stock has moved above 200 DMA with good volumes. The MACD indicator is showing positive divergence as well. Will the stock turn around finally?

VST Industries - Breakout ???

VST Industries has seen a breakout from the resistance level of Rs 650 recently. The stock has registered a 52-week high as well. However there are two things that will comein the way of further upmove. First: The volumes are almost negligible; Second: The stock has formed a shooting star yesterday. This is a bearish pattern and often signal a reversal in an uptrend. The good run of VST Industries will be tested.

Bajaj Auto - bearish signals!

Although Bajaj Auto has been making higher-highs and higher lows for past some days but a bearish pattern of 'Three Black Crows' has emerged. The stock has been closing near its low for the past three days. The last two candles are pretty long. Also today the stock dipped below its 200DMA.

Nifty slips below 5800

As it was anticipated, Nifty witnessed selling pressure today and closed below crucial level of 5800 today.

Nifty may take a breather

At weekly level Nifty has closed with a Doji pattern. This indicates that after three weeks of successive gains traders are slightly indecisive about future marktet move. This indecision also gets highlighted in the daily chart below.

At daily level also Nifty failed to breach the crucial 5900 mark today and closed at 5842 points. Breaching 5900 is crucial to come out of the downward trend line. But, Nifty has closed today under that and now stands at a crucial support and if it falls below 5800 it may slide further.

Long or Short ?

BPCL has moved out of a downward channel and successfully moved above its 50 DMA. The stock is making higher-highs and higher-lows after touching bottom in Feb. But, the stock is facing resistance at current level. Perhaps, crude price will determine future direction.

BHEL has broken the down trend line with some good volumes but faces immediate resistance at Rs 2300. Failure to breach that level may pull it down.

Silver hits a new high!

Silver zoomed to a new high today by rising to Rs 57,000/kg. In the global market the precious metal touched its 31-year high. Rising inflation, surging oil prices and sustained demand as an alternate asset class have been fanning the prices. Despite reaching an all time high, Silver is going strong at technical level. Its 50-DMA (daily moving average) stood at around Rs 51,000/kg and the immediate support level is at Rs 54,890/kg.