Nifty Analysis – 2011 | Stock Market Investing
Here’s the Nifty hourly Chart highlighting the 6 day trend channel.
Nifty has tested the channel a couple of times today on hourly charts. Eventually at the end of the day, it got back into the trend channel.
If we have a look at the Stochastics indicator, it seems that Nifty is in the oversold region on hourly charts and at the same time RSI indicator shows that a negative divergence is approaching.
Have a look at the chart above.
Dow Jones Industrial Average opened at 11520 and crashed to 11381 in just 1 hour 30 minutes. Since, today is Friday, heavy short covering has taken place. Let us see how the index shapes out in today’s session.
Also have a look at the Daily chart of DJIA above. The index seems to be moving sideways which means there is consolidation taking place. The index has been moving sideways from the past two and half months. 11600 – 11650 levels have been offering strong resistance. DJIA is finding it difficult to break the resistance. Hence, the sentiment remains bearish.
The current scenario of Stock Market is murky. There is a heavy chance that we might see more downsides coming in a couple of days.
So let’s just wait and monitor the direction of the market. Have faith in the market and be flexible.