Sunday, March 11, 2012

CNX Nifty 50 - Triple Screen Analysis - Week: 05 March to 09 March 2012 - Poised !

Recap: The Nifty drifted below the 34 EMA on the EOD last week (post here)- bounced off the 200 DMA (post here) and is just in the Neutral zone as of  last weekend. The EOW chart also shows a precise take off from the 34 EMA on the weekly charts. Overall our note that the 34 EMA and 200 DMA zone, would hold the bears, rang true.

Nifty - End of Month Chart - 09 M arch 2012
CNX Nifty 50 - Month Chart (each candle is 1 month): Taking support on the 5 EMA the index has closed above the 13 SMA. We now zoom into the area marked with a blue square for a closer look..below.

Nifty - End of Week Chart - 09 March  2012
CNX Nifty 50 - Week Chart (each candle is 1 week): With a clinical take off from the 34 EMA (see blue oval) the Index almost formed a Doji this week. Bulls would have been confident going into Budget week if the close were above the 5 EMA. The STS shows the action of the resistance line. We now magnify the portion in the Blue square with the chart below.

Nifty - End of Day - 09 March  2012
CNX Nifty 50 - EOD Chart (line chart of close prices):  The closing price disguises the action on Wednesday where the Nifty bounced off the 200 DMA like a vetran! The 5 EMA and the 35 EMA form a touch and go (Bullish) as of now. Bullish cross of the 5 EMA above the 13 EMA should be the precursor for the next Bull move. Bulls Smile above 5343 for Monday and Laugh above 5484 (Wall) for the month. 

Looking Forward: World markets (US, Europe) are largely back in the green. India as seen in the previous study is not is the best of places after the recent fall.  With the anticipated volatility, our range on the EOD chart should give some good trading moves. Trending times are below the 200 DMA or above the Wall.