NSE INDEX CMP 5408.70

One sentence to explain index on charts is “Intermediate trend is negative - which is a trap.&" I expect Index to rally the first 2 days of this week once again as we have a month close and is expected to be a strong monthly close above 5400. On monthly charts August month is expected to be the month which would close above 5400 which was the peak or in other words the higher range of the bullish consolidation – resulting if we close above 5400 on 31 August than on charts we will get a monthly positive breakout which would lead us only one-way and It would be towards north direction. Technically any positive breakout would lead us sharp upwards move on charts. Index is strong and investors should hunt for opportunities to buy at dips.

Weekly Resistance          5446 | 5469 | 5506 | 5567

Weekly Support               5371 | 5348 | 5311 | 5251

 

RELIANCE CMP 949.60

On monthly charts stock was trading in a range of (1150 – 959) since last 8 months. This month it has broken the lower range on charts – resulting negative break-out and is expected to bleed. On charts the stock has 2 strong supports (901 & 858) this is where we might expect some serious short covering or may be value buying could be expected; however I would not advocate buying this stock as it is in a serious downfall and would wait until we get a bullish pattern on charts because I personally believe “Investors & traders will never harm their capital if they are with the trend.&"

Weekly Resistance          960 | 967 | 978 | 995

Weekly Support               939 | 932 | 921 | 904

 

Disclaimer

We & our clients do not carry any positions in the above mentioned stocks / indices, however we may trade / advise the above said for trading to our clients….

 

(Ravi Nathani is a Mumbai based Technical Analyst for more details visit www.nsetoday.com)