NIFTY UPDATES (29th July)

SURE NIFTY TIPS !!!
With markets making further inroads into the negative territory, the indices closed the day significantly in the red. The BSE Sensex lost in the region of 120 points whereas NSE Nifty shed around 30 points. BSE Midcap and Small cap indices also ended lower however the selling was not as intense as in their larger counterparts. The advance to decline ratio stood at 2:3.
For today Intra-day, Nifty has a support at 5382 & 5348 and faces resistance at 5414 & 5448. Nifty above 5431 will set a target of 5442, 5457 & 5468. Nifty below 5379 will set a target of 5366, 5351 & 5324. Last trading action is mark as a Bearish candle with a small upper and lower shadow also thick real body. Nifty has found a bear candle followed by Harami Pattern
shows more weakness. Nifty has a support at 5344 on closing basis. A close below 5344 will give proof of Short term Reversal.

For Short term, Nifty has a support at 5364 & 5284 and faces resistance at 5473 & 5517. As we can see from above chart, markets is trading is a big channel Blue channel wherein facing resistances at upper end of the channel and support at lower at lower end of the channel. From Bse Sensex daily chart, it has completed both side of trend in which it has finished upper side
by testing upper end of the channel (i.e. 18048) and ended downside by testing lower end of the channel (i.e. 15960). After forming bottom, as per the tradition Bse Sensex has started moving towards upper end of the channel (i.e.18364). As per the time-wise cycle, Nifty has shown 9 to 10 weeks of bull rally thereafter 4 to 7 weeks of bear rally. Last week was planned as 9th week and this week will be the last bull rally (10th). But for downside evidence Nifty has to close below 5353. As we can see Nifty is oscillating Red Parallel line wherein hurdle at 5454 and support 5353. Technically, either side closing will see Trend.

Now the question arise where is Nifty heading? Technically speaking, having a look at monthly chart Nifty has given a break out of upper end of the channel. Moreover as per Wave count, Nifty has rally from 920 (Oct. 2002 Bottom) to 6357 (January 2008 Top) is mark as Wave A. Subsequently, Nifty corrected till 2253 (October 2008 Low) which is 75% of the rally & even 64% cut from top. After taking support at 2253, Nifty did consolidated almost 6 months and with the recent high at 5453 Nifty has recovered 78% of the entire fall. However, as per moving average Nifty closes below 5122 on weekly basis will provide Negative Divergences and which will states that Nifty has start Sub-Wave B (corrective wave) in Wave C or up move continue.
As Long as Nifty stays above 5344 (Closing basis), we remain POSITIVE on Nifty.