Sunday, January 26, 2014

Nifty Chart Analysis: 24 Jan 2014

In Nifty 30 Mins TF, we can observe Rising Wedge pattern which was formed on 23rd Jan having breakdown below 6344, targeting 6304-6300. This target was achieved during opening hours on 24th Jan.
On 24th Jan, Nifty had formed Bear Flag pattern in 15Mins/30 Mins/60Mins TF. Breakdown below 6278 (already broke on 24th Jan in closing hours) targeting 6258 and 6217 with SL above 6290.


In 5H TF, Nifty has formed Triangle pattern. After giving false breakout above 6330 (high made 6356), its now back into triangle zone. Breaking 6220-6194, will be very bearish and may bring nifty another 445 points down from 6220-6194 in coming days. Considering highest 6200 PE OI and up-trend-line support at 6220-6194 may provide good support to the current downfall (at least for this expiry).


After false breakout, Nifty is again back in to triangle zone in daily TF as well. 50DSMA (at 6216) is very important support and nifty may bounce back from here. In past as well, 50DSMA had provided good support to major fall. If prices are able to break 50 DSMA, then next support zone will be 6219-6181, i.e. 61.8% & 80% retracement values for the rise from 6140-6347. Below this triangle up-trendline at 6150 and 100 DSMA at 6092 may provide good support. Below this 200 DSMA at 5950.





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