NIFTY INTRADAY:- 15TH FEBRUARY, 2013
S&P CNX NIFTY has not moved much this week , in last four days the range for Nifty has been 5879 to 5969. On a closing basis we are around 5900 on Nifty intraday chart. Today Nifty has closed at similar levels as it did on Monday. Technically, it would be pleasing if Nifty touches 5840-50 before commencing any pull back. It will satisfy the Fibonacci retracement level and therefore more comforting. We are yet not considering a break of the trendline and in this week Nifty is meandering just below or on the trendline. Twice this week the 50 DMA has acted as resistance for the pull back.
Now going forward we can have two interesting movement on Nifty charts. In the scenario of a pullback we can move and get stuck in the channel shown by the arrows on the chart above. Therefore we would travel in a slower pace within this channel. The traders will have field days. Traders love channels.
Secondly, Nifty may get stuck between 50 DMA and 100 DMA. Again a channel but on the lower side. This channel with time will start moving downward forcing a time correction. Remember we are in bull territory and therefore one of these moving averages need to act as support. In this week the 50 DMA has acted as resistance, though it is too early to conclude anything.
It is a confusing phase on technical charts and other supporting evidence. The weight of evidence favors bull but we are on the boundary. There is a great chance that we move towards 5850 tomorrow. At the same time 5950 and more cannot be ruled out. In fact still the ball lies in bull’s court and they have to decide from where they want to restart the party again. The 100 DMA 5830 currently too is close to 5850 levels. Therefore the support is not faraway, it remains to be seen how and when the support is taken. Right now Nifty is in a discomforting zone for intraday traders.