Thursday, 21 June 2012

Nifty Analysis - Jun 22nd to Jun 29th '12

Nifty has broken out of the 5140 - 5150 band finally with neat volumes. Some of the banking stocks have confirmed a bullish head and shoulder pattern as well

 Nifty has strong support between 5100 - 5120 zone. With Nifty making a "W" pattern followed by a consolidation phase which has ended today, we should see some break out happening sooner, if not immediately tomorrow 



Trend line is pointing upwards with possibility of 5300 getting touched.

On Fibonacci retracement levels following are key levels to note,

38.2% - 5100
50% - 5200
61.8% - 5300

Trend line will get affected if 5050 gets taken off, and this will delay further movement upwards

Consolidation phase is in the verge of getting over and a climb over 5190 will confirm upward movement and then followed by few days of consolidation again

Parabolic SAR formed under the candlestick pattern suggests buying and can go long. For folks who want to play it with positions, buy on dips and keep accumulating. Stop loss should be strictly maintained at 5050





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