Technical Analysis and Market Outlook(15-03-2013)
Nifty-Intra Day Chart (14-Mar-2013):-
 |
| Just click on chart for its enlarged view |
1- Sharp down after opening and sideways trading till WPI inflation data announcement
2- Slow up moves in Rising Channel after WPI inflation data announcement.
3- Whole day actual trading between 5792-5920
Conclusions from intra day chart analysis
Sharp down immediately after opening and sideways trading till WPI inflation data announcement. As Core inflation reduced therefore recovery on expectations of rates cut by RBI in Credit Policy on 19 March 2013. Although Nifty crossed immediate resistance(5893) and it is strong indication of strength but on the back of positive news flow and up moves were without required force therefore selling development can not be ruled out.
Sentiment turned strong after sharp surge yesterday and Indian markets will trade under the sentiment of rate cut expectations and prepare for post Credit Policy moves. As strong resistances between 5940-5970 therefore any decisive up trend will be possible after valid break out above 5970 and till then range bound market is expected between 5792-5970 under all types of Bullish/Bearish sentiments in pre Credit Policy sessions.
Pre-open Outlook(15-03-2013)
Although US markets closed with sufficient gains yesterday but Asian markets are mixed today morning therefore sentiment is quiet and expected that Nifty will firstly hover around 5900. Strength of resistances are as follows:-
1- 5874-5893(crossed yesterday but sustaining above is required yet)
2- 5940-5970(strong resistances)
Following levels should be firstly watched:-
1- 5874(valid break down will mean fresh down moves)
2- 5893-5940(trading positions within this range will form next trends)
As market has to prepare for next trend therefore post Credit Policy moves will be ubderstood from intraday charts patterns formations and will be updated in Mid-session Outlooks.