Short term Technical view of Nifty- 20/8/2014

Short term technical  view of Nifty is presented below

                                                       Click the chart to enlarge it

Nifty Short term Outlook and forecast, 1 February 2011

It was earlier mentioned in my post that Nifty was likely to test 5550. Now, with Nifty testing 5550, the trend of Nifty still continues to be bearish. Any support or crucial level should not be violated. By violating the crucial support, Nifty indicates, the direction of Nifty in short term is weak.


Even if it sees a short term rally from here, as the rally comes after breaking the support, it is unlikely to sustain. In case of any rally, maximum it could go in the upside is 5900. Now if it fails to sustain above 5550, then it is likely to see the downside target of 4700 in coming weeks.

Nifty Short term Forecast, 24 January 2011

Earlier it was mentioned to remain short in Nifty with a stop at 5710 and that level was triggered. But, the crucial 5775 in Nifty spot has not exceeded and the short term trend in Nifty still remains bearish. The trend is likely to change only when it crosses 5775. Above 5775, a rally towards 5850-5900 is possible.


But if it fails to move above 5775, as I said earlier, a decline towards 5550 is possible. The level 5550 is likely to act as a crucial support for the medium term. Break of this level, would pretell a decline towards 4700.

Nifty Short term Outlook, 20 January 2011

The level 5650 is crucial for intraday. Break of this level would confirm a downside target of 5550 in coming trading sessions. As mentioned earlier, Nifty is likely to see a pull back rally from around this region. Failure of Nifty to hold above 5550, would presage a steep fall towards 4700 in coming weeks.

Trading in the short side is advisable, if Nifty breaks 5650 today. Those who are already holding shorts can revise their stop at 5710.

Nifty Post Market Analysis, 19 January 2011

Yesterday, I mentioned 5775 as the crucial level and break of that level could take Nifty towards 5850-5900 levels. But today it could not move past that level. And also it broke the intraday crucial level of 5710. As of now, it inspires, that Nifty is likely to test 5550, if 5775 is not broken in another 2 trading sessions.

Once again the level to watch is 5775 for tomorrow. And in the downside, the break of 5650 could confirm a decline towards 5550. Right now trading in the short side is advisable as long as Nifty trades below 5775.

Nifty Post Market review, 18 January 2011

Today Nifty took support around 5670 and bounced back a litttle towards 5775. Since Nifty has closed above the intraday crucial level and 5700, the next crucial level to watch is 5775. If, tomorrow this level is broken in the upside, Nifty is likely to test 5820-5900 range.

Now Nifty has to move above 5900 in the upside for a short term rally. Failure of Nifty to move above this level would push the market towards 5550 levels. So for tomorrow the level to watch is 5775.

Nifty is nearing the crucial support of 5550, 18 January 2011

I have been mentioning 5550, almost for the past one year. Earlier in 2010, it struggled to move past that level. Nifty retraced two times before testing that level. On the third attempt on september 2010 it moved past that crucial level.

As it failed to move above its all time high, it is being expected to test the next crucial level of 5550. Now Nifty is in the striking distance of 5550. Nifty is likely to bounce from this levels atleast for the short term. If 5550 is broken without a pullback from here, the fall is likely to be very steep.

Nifty Couldn't move past 5900, Target of 5550 is likely to come first, 14 January 2011

Earlier, we have mentioned 5900 as a crucial level and failure of Nifty to move above 5900 could impart further weakness in Nifty. Nifty bounced from 5700 levels from where it saw a pull back rally earlier. The recent rally from 5700 could it move past 5900. It was halted around 5858.


Now, as Nifty could not move above 5900, a break of its earlier low of 5690, would confirm a decline towards 5550 in coming trading sessions. In contrary, only a move above 5900, would confirm bullishness in Nifty.

Nifty Short Term Technical View, 10 January 2011

Nifty has breached the 5900 in the downside and this level is going to play a crucial part for the short term. If Nifty sustains below 5900 for another 3 trading, then the short term trend of the market would remain bearish till it tests 5550.


On the other hand, any bounce has to come from this levels. The first indication of bullishness would be the crossover of 5950 in coming trading sessions. Otherwise, as of now, the trend remains weak for the short term.

Nifty Short term View, 6 January 2011

As we said earlier, Nifty failed to sustain above 6240 and corrected. In the downside, the next crucial level for Nifty is 6050. The level is crucial because, Nifty was resisted in this level earlier for more than two times.

So, if this level is broken in coming trading sessions, Nifty is likely to fall further towards 5900 levels. For the intraday 6120 is crucial. Traders can hold their shorts as long as Nifty trades below 6120.

For the short term, postional traders remain short with a stop 6120. Book some profits around 6050, and continue to your positions if 6050 is broken. Fresh shorts can be considered, if the level 6050 is broken.

Nifty Short Term View, 5 January 2011

The next short term crucial level in Nifty is 6240. Nifty May try to test that level in coming trading sessions. In case, if it fails to test that level, then immediately a sharp correction towards 6050 is likely in coming trading sessions.

Positional Traders can initiate shorts if Nifty fails to clear 6240 level. Instead, a move past 6240 could impart short term bullishness towards 6350.

As of now, Nifty is trading below it's crucial level of 6240. Short positions are advised with a stop at 6240 in Nifty spot.


Readers are invited to post their view on nifty in the comments section.