Daily Indicators Analysis
Nifty- 1 Year EOD Chart(20-Jan-2011):-
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Conclusions from indicators analysis are as follows
1- Bollinger Band- Nifty traded continuously at the sharply rising Upper Band line and strongly signalling the demand of correction.
2- MACD- MACD line is above Average line and both lines have diverged suufciently therefore indicating the demand converge through correction.
3- Slow Stochastic- Over bought and showing possibility of correction after previous week rally.
4- William %R- Over bought and showing possibility of correction after previous week rally.
5- ROC- RSI- Rising but not in over bought zone and no signal of divergence therefore showing scope for some more up moves before correction.
6- RSI- Rising but not in over bought zone and no signal of divergence therefore showing scope for some more up moves before correction.
Conclusions (After Putting All Indicators Together)
Indian markets are overbought and on the verge of correction. As divergence is not seen therefore signalling little more up moves possibility before beginning of correction.
Intraday selling indications on 20-Jan-2011 and overbought Indicators demanding correction also but divergence is not seen in indicators therefore follow up positions(buying/selling) in the beginning of coming week will be firstly watched for next decisive moves confirmations.