Aug 14, 2012

NIFTY OUTLOOK (14th August, 2012)

Nifty Bounced Back: Will It Break Trend Line Resistance?

The NSE Nifty spot closed at 5348 with good buying pressure. As indicated in yesterday's report, Nifty spot showed the upside movement and it was given better idea as buy in deeps. Now, this is the time to break the trend line resistance to move forward. If we analyze the lower indicator stochastic, it is showing the negative diversion for favorable movement and will cut soon from the level of 70 which is nearer to overbought situation. Whereas, MACD is supporting the view of positive movement by fresh cut upward. This is the situation where intraday traders may face trouble to enter in long and short Nifty future position. They are not advised to trade in intraday for this day for safe trading. But, Nifty spot price line is having significant upside potential. Traders are advised to keep in mind the major resistance at 5397 which is a trend line resistance, indicated in given chart.

Happy Trading !!

Megha Investments & Research Team


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