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Daily Nifty View and Market Trend Analysis

Monday, April 2, 2012

Market Direction - Nifty Trend Analysis - 2 Apr

Today was a comparatively quiet day for Nifty, after the mammoth up-day on Friday, and Nifty ended the day 22 points or about 0.4% higher. Although the broader market was doing much better in comparison with several smallcaps and midcaps showing good strength.
Pl see the Nifty chart below:





Pls note the folllowing points for Nifty on the basis of above chart:

  • Nifty has had a small positive candle today on EoD (End of Day) chart, however the price has hit the 50 SMA (simple moving average) and that may act as a brief resistance. I have marked area of resistance with a circle.
  • Nifty has definitely received support at 200 SMA and continues to move in a bullish Wedge.
  • Another source of resistance for Nifty would be the downward sloping trend-line, which may push the index down as it did on 14th Mar.
  • Once Nifty breaks above this trend-line, it breaks above the Wedge and hence may lead to a sustainable strong upmove. 

Tomorrow or day after may be a deciding day and April traditionally is a bullish month for equities.
Happy investing and trading! 

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