NIFTY DAILY CHART NIFTY MONTHLY CHART CNX IT DAILY CHART
Nifty made a high of 3240.55 as against the prediction of 4000 made after touching the low of 2240. The pullback was in accordance with wolf wave pattern, but hasnt touched the projected target.
The worry sign now is Nifty has changed its short term course to down, as in weekly and monthly charts inverted hammers has formed from the important level of 3166 which is the important 38.2% retracement from the low of 2240. CNX 100 ended the week with a bearish engulfing candle clearly indicating testing of lows. Same is the case with CNX IT, which is forming a symmetric triangle stock chart pattern, the move of 10 November 2008 wasnt able to lift it above the resistance line as shown in the accompanying chart. STOCHASTIC momentum indicator is telling me a new sharp low for IT. Such STOCH patterns creates sharp lows. And the symmetric triangle stock chart pattern is known to give massive breakouts in the prior trend.
NIFTY monthly chart is showing a negative divergence and again a deadly STOCH crossover escape giving further worrying signs as shown in accompanying charts.
It looks certain to me that, at least now we are going to retest the lows, with a heavy possibility of further downfall.
DOW JONES INDUSTRIAL AVERAGE monthly charts have at least given a STOCH crossover but there too a negative divergence indicates further weakness. Only positive is seen in inflation which has fallen drastically by over 1.5%. So, all in all negatives outweigh positives for Indian stock markets.
Be ready for a test of 2000 in nifty
Nifty made a high of 3240.55 as against the prediction of 4000 made after touching the low of 2240. The pullback was in accordance with wolf wave pattern, but hasnt touched the projected target.
The worry sign now is Nifty has changed its short term course to down, as in weekly and monthly charts inverted hammers has formed from the important level of 3166 which is the important 38.2% retracement from the low of 2240. CNX 100 ended the week with a bearish engulfing candle clearly indicating testing of lows. Same is the case with CNX IT, which is forming a symmetric triangle stock chart pattern, the move of 10 November 2008 wasnt able to lift it above the resistance line as shown in the accompanying chart. STOCHASTIC momentum indicator is telling me a new sharp low for IT. Such STOCH patterns creates sharp lows. And the symmetric triangle stock chart pattern is known to give massive breakouts in the prior trend.
NIFTY monthly chart is showing a negative divergence and again a deadly STOCH crossover escape giving further worrying signs as shown in accompanying charts.
It looks certain to me that, at least now we are going to retest the lows, with a heavy possibility of further downfall.
DOW JONES INDUSTRIAL AVERAGE monthly charts have at least given a STOCH crossover but there too a negative divergence indicates further weakness. Only positive is seen in inflation which has fallen drastically by over 1.5%. So, all in all negatives outweigh positives for Indian stock markets.
Be ready for a test of 2000 in nifty
