Tuesday, July 22, 2008
Nifty Analysis as on 22nd July
Today Nifty showed good gains and closed up with a noticeable increase in volume. I am presenting here the Daily chart of Nifty of today.
The chart is for a shorter period, and the things to notice are:
1. Nifty is at the 34 Day EMA resistance. This can be a big resistance. If taken then we can expect to see levels near the 50 Day SMA which is near about 4450.
2. The upmove was supported by better volumes. So, We can't say the move was "tiring".
3. There is four consecutive days of upmove.
Nifty should not fall below 4030 as there it will fall below the previous resistance line. But, before that, it should maintain 4170 levels or above as there is the previous support line (of the channel).
The reaction of Govt trust vote should not be too much. In my opinion, charts are saying most traders believe the govt will survive. I don't look at news for trading and that's my advice for all.
With the same disclosure, I conclude this post...