Online Share Trading Solution

 


  



TREND LINE CONJECTURE:-

We have drawn trend line joining two significant bottom 3918 and 4786. According to trend line theory next levels of support could be around 5400. Any closing below this trend line may further dampens the current scenario and possibility of getting new lows near to 5200-5250 could be more justified. On the upper side any bounce back from 5400 may leap indices towards 5640-5650 where we might see some profit booking
Same in the Sensex , channel line drawn from the lows of 13219 and 15960 may provide crucial support around 17900-18000. Below this flood gates may open and we might see some drastic fall near to 16000 in a short span of time. On the flip side 20500 could be the key resistance level to watch.

MOVING AVERAGES AND THE CANDLE STICK PATTERN:-

The short term moving average is an indicator of the trend in the near future. The value for the short term moving average (20 DMA) is at 5470 and medium term moving average (50 DMA) is at 5740. Presently, the Nifty trading below20 , 50 and 2000 dma, which would be treated as bearish si signal coupled with oversold territory. Hence possibility of bounce back couldn’t be rule out at any stage though5640-5650 (200 dma) might be the key resistance zone.

FIBONACCI RETRACEMENT:-

Entire rally from the lows of 4786 to 6335 took 25 trading weeks without any substantial correction. If we applying Fibonacci theory and took retracement of this current rally, 50% and 80% retracement stood at 5555 and 5375 respectively. Any break down above this level could open the flood gates and possibility of losing another 100-200 pts should be on higher side. Moreover spot index created some gap on 14/02/211 of more than 30pts which has not been filled yet. Hence we are expecting this gap should be filled in the upcoming week however possibility of bounce back couldn’t be rule out at any stage.