Technicals 23rd Jan 2012

 Indian Market/Stocks, Premium Content
Jan 232012
 

Nifty (5048): Nifty's high on Friday was exactly one point below the resistance of 5065. The pattern on the daily chart is a stalling pattern.

Nifty - Daily Chart

Without getting in to the short term technical labeling of the market, there are two possibilities:

a) The corrective rally has already peaked

b) Or after a mild dip, the sucker rally continues to head higher and traps a huge number of bulls

Once again the key for this going to be 4800 - that is the line in sand for the bull-bear divide on the Nifty. If I see any other early sign that the corrective rally has ended, I will post or send an intra-market update.

Resistance: 5065: Support: 4910

 Posted by at 8:53 am

  16 Responses to “Technicals 23rd Jan 2012”

  1. Rut says:
    January 23, 2012 at 9:49 am

    Jai,

    Any views on SBI or ICICI Bank .

    Regards

    • Jai says:
      January 23, 2012 at 11:21 am

      Dear Rut,
      Medium term view for ICICI is unchanged – a new low below the December low would come. Just have to wait it out.

  2. paragj says:
    January 23, 2012 at 9:55 am

    Hi Jai,

    Apparently the Banknifty is holding up the markets – can tomorrow’s RBI meet be even more positive for the Banknifty & Nifty as well in effect?

    At what levels, does the Banknifty looks like topping out?

  3. vivekagrawal says:
    January 23, 2012 at 10:15 am

    Hi Jai,

    Tomorrow may be the trend decider. BankNifty has been in a large rally in some anticipation of rate cuts from RBI. The policy tomorrow with either stoke or dampen that enthusiasm. I think this is a suckers rally too.. 🙂

    Thanks,
    Vivek

    • Jai says:
      January 23, 2012 at 11:28 am

      Hi Vivek,

      Yeah possibly. May be Friday was the peak and tomorrow would offer the impetus. Let us see. Im thinking banks will behave like Hero today, completly wiping off the earlier gains

  4. vivekagrawal says:
    January 23, 2012 at 10:25 am

    BTW, what are the bands on the chart? Are they some kind of moving averages. Thanks!

  5. shabbirsp says:
    January 23, 2012 at 11:35 am

    hi jai,
    any views on creating fresh shorts in hero as it has gone down below 1898, as u had mentioned before about the same
    regards

  6. shabbirsp says:
    January 23, 2012 at 12:05 pm

    jai
    the gap between jan and feb futures for hero is approx Rs 40 (lower than jan), that make the stop loss of 2015 even higher, is it still ok to short with the same target? kindly advice

  7. hotlakshmi says:
    January 23, 2012 at 12:34 pm

    Hi Jai Your view on Yes Bank and City Union Bank please thanks

    • Jai says:
      January 23, 2012 at 12:50 pm

      Yes bank charts not easy to discern but it looks like it could get to 146 in the medium term. Long term looks very good. City union I havent looked at it – will check

  8. sara2002 says:
    January 23, 2012 at 8:32 pm

    hai jai

    so trend market is down ,can i buy 5100 put or 5000 put for next month ,when to buy these put’s pls tell levels of nifty when it crosses

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