Author: Y.

Bhardwaj

Date: July 21, 2011

Daily Report: July 21 2011

Explanation as per graph Yesterdays move was supported with comparatively high volume. Unless it breaks out the upper blue resistance line on closing basis, its down trend will continue. As it is seen in the graph, moving averages are crossing longer period averages from above. The down move was supported by volume. Bollinger band is shrinking suggesting limited deviations. Probably a triangle formation is in the process with horizontal bottom and the opposite side is tending towards horizontal bottom, if its there, there will be a bigger downward move. Note: The above analysis is basically done for NIFTY traders.
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Author: Y. Bhardwaj

Date: July 21, 2011

MACD crossover is done, another verification of coming down move. RSI is still above 30 allowing space for down move for markets before it gets over sold.

Note: The above analysis is basically done for NIFTY traders.

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Author: Y. Bhardwaj

Date: July 21, 2011

Things/Events to watch European and US scenario is more or less the same, but Asian region is getting more volatile. Rice price has moved up about 70% in the last year adding fuel to the Asian regions inflation problem. Today Asian markets are trading in red. The Indian finance ministry has now officially revised downwards the GDP growth rate for this fiscal. FY12 growth is now expected at 8.6 %, revised downward from the 9% in FY12.

Gen Market description Not much to say in this section today. My Opinion /Advice My opinion for Nifty trading is same as expressed in the last report.

Do not make long positions in Nifty futures now. People who are having short positions in the market can hold there positions. Nifty should try to move towards 5500 .If it breaks 5500 level on closing basis the next support is around 5350.

Note: The above analysis is basically done for NIFTY traders.

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