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Friday, March 27, 2015

Nifty - Support and Resistance on weekly charts!

Ok, so Indian cricket team lost badly to Aussies and Nifty crashed in remorse! Is it pure coincidence or there is more to what meet the eyes? Pls remember that the world is flat and world of money and liquidity is even flatter!!

You will be surprised to know that there was a statistical study carried out between Indian cricket team performance on a big match day and Nifty performance on the same day, and it was concluded that Nifty ends on a positive note whenever Indian team wins their big matches!

My best guesstimate to explain this behavior is that its a known fact that billions of dollars worth of betting happens on big cricket matches in India. Typically emotional Indians bet on their own team's victory and when Indian team does not win, and one has to settle the account, easiest way to do this is to liquidate your stock positions and make the payment. This results in relentless selling pressure in stock markets on the day India loses a big match! Simple, isn't it? Well, this is just a guess and i don't have any data to prove this correlation.

However, what i have is weekly support and resistance levels for Nifty. Nifty's next support is at 8160 and once that is breached, support is at 7800 and 7400 levels.

For resistance, weekly charts show that 8600 is good resistance level and 9000 has become a huge challenge to cross now with huge double top in place.


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