Thursday, March 22, 2012

EOD Technical Analysis, CNX Nifty - 22 March 2012 - Channel Bottom!

Nifty - End of Day - 22 March  2012     
In our analysis of the US market last weekend (see end of post here) we concluded that we would anticipate a Correction. In our study on Nifty (see end of post here) last weekend we said that since US & Europe could correct, Indian markets would be under pressure to go Bull. World markets corrected and India too, fell today.

Yesterday, we observed that we were a nudge away from the green. The 5 EMA and 13 SMA on our EOD charts were showing a possible 'touch and go'. Circled area (from above) is zoomed (below) with a red arrow showing the touch. Bullish for the morning session, after Europe opened, we saw the 5 go below the 13 and the Nifty fell by 100 points. So one observes, that these 'touch and go' scenarios produce great Bullish and Bearish moves, simply because of punters positioning themselves too early, anticipating a crossover and then covering in a panic !

Nifty - Zoom in for 5 EMA & 13 SMA 'Touch and go' action from chart above