Nifty as on 22nd December 2008

As has been indicated in my weekly update, nifty is finding it difficult to move above the 3100 level and also its 50 Day EMI( which is at 3077). These two levels appears to be very crucial levels for the next moths series. One positive feature of last ten days nifty movement is that the rises were on high volumes and the falls are on low volumes, indicating that the bulls are slowely comming into forefront after long time. So better watch out for surprise moves in nifty in comming weeks.

The movement of nifty for the last ten days is between 20 day EMA and 50 Day EMA so these two levels will act as major support levels in the comming weeks. Any breach of the same will give a good movemnt in the direction of break out. So any longs should keep stop loss at 2900 and shorts should keep stop loss at 3100.

One point that is to be noted is that Directional Momentum indication popularly Known as DMI is moving down on daily charts giving an indication that the Markets are becoming directionless. So any trades should be initiated with stop loss at 50Day EMA or 20 day EMA.

Note: the above write up is only, the interpretation as per the patterns and should not be construed as an investment/trading advice, and the author is not responsible for any loss incurred by investing/trading in this regard.