NSE NIFTY Analysis – Aug 30, 2010

NSE NIFTY Report –Aug 30, 2010
Technical Analysis

S&P CNX NIFTY closed down -69.200 at 5,408.700. Volume was 2% below average (neutral) and Bollinger Bands were 45% narrower than normal.

Technical Outlook

Short Term:Oversold

Intermediate Term:Bullish

Long Term:Bullish

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• The market is near to being balanced and the price might move in either direction.
  
• The momentum is downward.
  
• The downward momentum is accelerating.
  
• In this situation we wait until the price begins to follow the momentum. Be patient and wait for the price to move along with the momentum continuing downward.

Bharat Mudgal’s comments:

We informed all the paid subscribers that the short-sell indicator has given a sell signal. This resulted in huge profit in a single day.

Moving ahead, The spot NIFTY has lost the upward momentum and is in the neutral zone now. This does not mean that we can go short. What this means is that one should now wait and see if the NIFTY now gets back to upward or downward momentum. Which ever direction we get, we will ride the wave in that direction. At times it’s the best strategy to avoid trading in the markets or else one might get trapped.

The resistance on the upside is 5425 > 5455. On the downside, the support is at 5395 > 5404.

Tags: NSE NIFTY Analysis

Category: Market Trend Report