Banknifty view for 14.10.2013

BANK NIFTY ANALYSIS:

Bank nifty gave a breakout from the congestion area. The pattern formation is a bullish hammer on the support 10440. The MACD is given a buy signal. The target on the upside is 10950 and 11950. While on the flip side the support is at 10170. Sustaining above 10710 will be important.

While the released IIP data for the month shows clear signs of slowdown, so on the flip side the prices may be forced to be thrown back to 10170 levels thereafter at an important support at 9820.

The current momentum is strong, but this may be mitigated by the IIP data. Coming week is very crucial for Bank Nifty.

NIFTY FOR THE COMMING WEEK 14-10-13

 

NIFTY ANALYSIS:

On Friday the nifty has shown strong strength, from lows of 6072 it managed to close at 6130. It just shows how the bulls are in no mood to backing out. Still 6145 may act as a strong resistance to its movement. Also the prices have crossed the UML, the Hagopian line is also crossed  by the prices. If prices managed to cross 6145 the next resistance is at 6200. While the released IIP data for the month shows clear signs of slowdown, so on the flip side the prices may be forced to be thrown back to 6050 levels, which is an important support, breaking this can lead Nifty to visit 5950. While the momentum indicators are very bullish, no negative divergence is noted. A close watch on

Nifty is kept for the next week, it will only decide further movement.
Also worth mentioning there is development of “INVERTED HEAD & SHOULDER” and the prices are just on the breakout verge.

BANKNIFTY FOR 09.10.2013

As blogged yesterday "But as these markets are guided by greed and fear, yesterday there has been a formation of hammer on the support 10140. The bullish pattern is formed on the LML. Bank Nifty will find difficult crossing 10600 "
The Banknifty opened gap up and this was gradually filled during the day, the bulls failed to push the banknifty and finally closed at 10197. We have been constantly blogging that 10450 is a very strong cap and banknifty has failed to breach that. In the chart we see that banknifty may face resistance at the UML and may eventually return to MML 9800, 9300 and eventually 8700. While on the upper side 10600 is capped.

BANK NIFTY VIEW 08.10.2013

Before going into any analysis of the Bank Nifty chart, it would be better if we understand what is MSF. Marginal Standing Facility Rate :  Under this scheme, Banks are able to borrow upto 2%  of their respective Net Demand and Time Liabilities" outstanding at the end of the second preceding fortnight .  The rate of interest on the amount accessed from this facility wef  7th October, 2013 has been fixed at 9.00% (earlier wef 20th September, 2013, it was reduced 9.50%).

Does it changes any overall economic fundamentals?? NO!!!!

But as these markets are guided by greed and fear, yesterday there has been a formation of hammer on the support 10140. The bullish pattern is formed on the LML. Bank Nifty will find difficult crossing 10600 today, but if it dose so then whole preview for the short term will change.

 

HCL TECH

Everybody's favrioute stock seems to be HCL Tech nowdays. Everybody is having a view to short HCL.
Is HCL is a short really? Have a look at chart be your own analyst.

Banknifty for 04-10-2013

"Merk slashed jobs, ford very bad results, US government shutdown first time in 17 years and Indian markets almost 3% up in 2 days" - Welcome to markets.
The Indian markets are discounting all the bad news around the globe and macro economic situations. This rally may be a liquidity based rally and may not last long.
In the above chart bank nifty face resistance at 10400-10450. Our short positions are open until these levels are capped, above this we have to close the short positions (all EOD basis). On the flipside 9960 will act as a strong support for bank  nifty.

 

BANKNIFTY VIEW FOR 03.10.2013

In the above chart the price forms a head and shoulder pattern and a negative crossover is confirmed by the MACD. Prices has taken support on 78.6% Fibonacci levels (9660) and bounced back while 61.8% Fibonacci levels (10435) will act as a strong resistance.
While the CAD factor is already priced in, the markets need some more fuel to pump up this rally.
We maintain negative outlook on Banknifty till 10400 is capped.