Friday, July 11, 2008
Nifty Analysis as on 10th July
Today I am posting my analysis of Nifty as of 10th July, 08. First my apologies for posting so late.
Please refer to the chart, there I've drawn several trendlines depicting the major areas of support and resistance. As we see, the index is in sustained Bear Market. The Major Downtrend Line is still looking too far away and so there is little for those who think the Bear Market is over or is going to be over soon. The resistance area considering this line is the place I have put "Rh" standing for Resistance - highest. The level for this is 4650 and getting lower every day.
The next line of major resistance is Secondary Downtrend Line, which interestingly is on the verge of meeting with the well known support line which I have termed on the chart as Major Support Line (Previous). This area, the one at the meeting point of these two lines is going to be the biggest resistance for coming time, which I've marked as Rb - Resistance biggest. The level for this is around 4500 - 4550.
Before Nifty can try to reach the above mentioned Rb area, it will need to cross the latest downtrend line, the level for which for 11th July comes at 4310 - 4330. I've marked it as Rt - Resistance today.
In the above paragraphs I have mentioned only resistances but, there is definitely one support for Nifty which is at the latest uptrend line and the level comes at around 4000. I've put St - Support today for this area for 11th July. This means that bulls need to maintain at least 4000 in order to be in the game. Also, it looks a triangle is forming which can very well be a continuation triangle and we may see even lower lows if it breaks down.
I conclude my analysis with this and hope you all enjoy reading the post.
Disclaimer: Trading in stock markets is full of risks and one should consult a professional before acting on any kind of trade.