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Nifty spot is currently trading at 8565.55. This index has recently placed a top at 8968.70 which was 93.4% correction of entire bearish attempt from high 9119.20 to low 6825.80. Nifty has turned sideways near 88% Fibonacci correction of bearish move that presents ideal condition for a Bullish Bat harmonic pattern. Nifty price movement has already completed 3 legs of this pattern and now final leg ‘CD’ is in progress that completes near 88% correction of primary leg ‘XA’ which is placed at 5574. Based on price action Nifty, however, had recovered from 57% correction of bullish attempt from low of 5118.85 to high 9119.20 but failed to make a higher top to confirm continuation in longer term bullish trend and now it keeps chances alive for negatively biased sideways market. Nifty has been fluctuating between 8500-8900 zones from past few weeks and attracting buyers near the areas of 8500-8470 zones. Thus we can consider areas of 8470 as very strong support but a bearish cross on MAC...

Copper has been witnessing a long term down trend since August 2013 and closed at 333.50 yesterday. Provided is weekly chart in which correction from top of 512.65 took place in a channelized manner and this metal found support near 291 whereas 284.10 was the swing low posted in 2010. Most recently copper recovered from 298.05 which is 88.8% Fibonacci correction of bullish swing AB. Swing AB itself is 61.8% correction of bearish swing XA. Fibonacci relationship between these swings hints possibilities of a harmonic structure that can be either Bearish Gartley or Bearish Crab. In case if pattern unfolds as bearish Gartley then current rally is likely to be terminated from 358 zones after completing leg CD of this structure. Presence of descending trend line resistance near 358 also increases significance of this structure. In case if pattern unfolds as bearish Crab then an advance to complete leg ‘CD’, which is 161.8% extension of leg ‘XA’, can’t be ruled out. And this extended rall...

Copper on MCX is currently trading at 338 up by 2.33 percent from its previous close. It  had witnessed a nice recovery after placing a low of 291.50 in recent months and headed a high of 343.85 during that rally. After that a short term correction took place that lasted almost for 3 months and this correction was witnessed in a channelized manner. Now copper has climbed above the resistance line of this channel while Stochastic is staying above 40 and MACD in bullish territory. Bullish price action is also supported by positive reading on momentum indicators and this rally seems reliable. Prices are now attacking its flip resistance (Support Turned resistance) thus the areas of 338-339 will play crucial role in coming days and if copper finds its way above 339 than a strong rally towards 351-366 can’t be ruled out in near term. Areas of 325 are expected to remain crucial and further stability below these levels might invalidate bullish expectations. 

CAIRN on NSE settled at 162.10 and registered 7.96% gains for the day. Provided is weekly chart of CAIRN in which a strong down trend can be seen clearly. Recently, stock has changed its dynamics on weekly chart and a long term bottoming formation can be seen clearly on MACD indicator. Inverse head and shoulder pattern has emerged in this stock and this week stock has broken out above the Neckline of this bullish reversal pattern.  MACD is now testing its signal line near centre line and MACD histogram is confirming MACD divergence that suggests increasing bullish momentum. Stock has formed a base above 20 weeks EMA which is itself a bullish trigger on short term time frame. However, 20 weeks EMA is staying below 50 weeks EMA but price has climbed above 50 weeks EMA that suggests increasing bullish momentum in this stock.  Inverse head and shoulder bullish reversal has emerged after 16 months of strong down trend that increases the potential of this pattern. However, patte...

Here are 5 reasons why NIFTY has potential to resume its primary (long term) bullish trend. Price has broken out above 1 year old descending trend line resistance which was drawn by connecting life time high of 9119.20 ( March, 2015) and another swing high 8654.75 (July, 2015). Broken trend line has provided strong support during most recent bearish attempts. Price has been staying above 20, 50 days EMAs and 20 days EMA is above 50 days EMA and both EMAs are trending up. Nifty has found strong support near 23.8% Fibonacci correction of bullish attempt from low of 6825.80 to high 7992. Smaller the retracement stronger the trend.  Price has started attacking on 200 days moving average while MACD is in positive territory.  A Confirmed breakout above 8000 will lead a strong rally in this index, whereas failure of 7650 will invalidate recent bullish developments. 

Nifty spot has successfully tested its flip resistance near 8000 and witnessed nice selling pressure after hitting intra-day high of 7978.45 and settled at 7912.05. Prices are facing resistance near 200 days SMA and 50% correction level of entire bearish attempt from top of 9119.20 to low of 6825.80. Nifty has been witnessing a consolidation in a small range from last 3 days that marks possibility of a bearish breakaway candlestick pattern which consists 5 candlesticks. We need 1 more candle to confirm completion of this pattern. MACD has been staying bullish territory but historical movement on this indicator hints overbought reading and might bring a reversal in this counter.  14 periods daily RSI is also around 67% and remains favourable for bears as long as RSI zone shift takes place. In this set-up we are using 2 moving average system to determine long term trend but short term ( 50 days) moving average is below long term (200 days) moving average that suggests a clear dow...

A very nice basing formation has emerged in silver and currently it is trading at 37562. A cup and handle pattern is clearly visible on daily chart and now silver is consolidating to form handle of this pattern. Yesterday silver took support at 30 days SMA and jumped nicely and today it has climbed above 5days EMA triggering bullishness in this counter. Stability above 30 days EMA remains supportive for silver bulls. However, a bearish cross has taken place on MACD indicator but still this indicator is staying in bullish territory and remains supportive for bulls. Immediate support is now placed at 36800 any failure of this level will put current cup & handle pattern in doubts and any sustained move below this level will bring attempts towards 35800 zones and further stability below 35800 will call for retest to floor of this cup near 33000 zones . Stability above 36800 remains extremely bullish and established move above 38000 will offer a primary rally towards 40500 and then ...

Domestic markets have responded positively to union budget 2016 and today NIFTY witnessed a rally of 235 which is largest intraday gain in last 1 year. A double bottom pattern has emerged on price chart and technical indicators are showing bullish divergence at the same time which is supportive for bulls. However, MACD indicator has been staying in bearish territory but a cross above its signal line hints weakening bearish momentum and divergence on this indicator hints strengthening bulls. 14 periods daily RSI has also formed a bullish divergence which is also supportive for bulls. On price action front NIFTY is now approaching towards descending trend line resistance and horizontal line which has flipped to resistance near 7260 zones. In case of stability above 7260 it will confirm a double bottom and descending trend line break and then a primary rally towards 7520-7600 zones can’t be ruled out. Support will remain at 7030 failure of this level seems less likely in case of fai...

Nifty has been experiencing a correction after hitting a top of 9119.20 during the month of March last year. This correction has occurred in a channelized manner and today nifty has witnessed nice recovery from 7241.50 after testing support line of this bearish channel. However, there is no evidence of bottom on chart and bulls need to establish a move above 7500 to claim their presence.  Index is staying below 5 days exponential moving average from last few days that suggests accelerated down trend. MACD indicator has been staying below center line and still it’s loaded with bearish momentum that remains a supporting factor for NIFTY bears. However, 14 periods daily RSI is testing oversold territory but it is also staying below its 9 periods moving average that keeps on going down trend intact. 2 Fibonacci projections are converging near 7220-7187 zones. These are the areas where NIFTY might get support. If nifty manages to spend considerable time below 7180 zones then down tr...