Nifty Update

Nifty 10 mins

Nifty 60 mins

Nifty Daily

Imperative Moment in Nifty.

Before having a view of the above charts please read our first post on Nifty Update date 20/3/2013, where we clearly mentioned that a break below 5675 can move the levels further down till 5550. And that's what exactly happened.

Now, that we are at 5550 levels, the scenario of the charts show the following:

1. Lets first analyse the intra day 10 mins and 60 mins charts. Both the charts shows a divergence at these levels. In the shorter version prices consolidated for the entire day on 08/04/2013 and were unable to break the upper levels of previous Gap Down i.e. 5588.
2. Again we witness the same divergence on the daily charts. But even important is the price level which is at lower level of the channel. 
3. And the same price level holds true on weekly charts as well.

With divergence in all three time frames, and the ongoing price level, much of an upside is on the cards. Not only because of the above mentioned reasons, but to add the most significant reason for the upward expectation is that 5550 is one of the levels where the ongoing wave 4 might reverse. 

But for this to happen, price has to pass through two hurdles:

• It has to break the upper level of previous Gap Down, and
• Most importantly, it has break the ongoing downward channel as well.

If we closely observe the candlesticks formation on the current 60 mins chart, the support is at 5550. And upside will happen only if price is able to successfully breach 5588. However, if 5550 is broken we can see Nifty finding its next support at 5500 i.e. the level of ongoing channel in 60 mins chart. And if 5588 is broken on upside the next levels will be levels of the horizontal lines in the intra day charts.

Hence, one has to wait to the breakout on either side to get the exact trend. Till then Nifty will be sideways.

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