Friday, June 8, 2012

EOD Analysis For 8th June 2012 and Outlook For 11th June 2012

Was tied up with personal work yesterday and hence could not update the blog.

OI in Nifty futures still hovering around the 17-18 million mark. The fall today can just be attributed to routine profit booking to end the week. The rise has been pretty sharp and we need to see how things pan out; if we go back to the image of the Falling Wedge of Nifty / BankNifty, prices have almost touched the upper trendline [refer image below]

If prices pierce that line on the upside, then one can be sure that bulls will try to maximize the upside as much as possible. Else, the range bound moves in the falling wedge will continue for the next few sessions Must admit here that the rise beyond 5032 on closing basis has been a bit baffling, esp considering the negative divergence

Nifty - Price + MACD [5,34,5] on 15 Minute Charts for 8th June '12

Prices are making new highs but MACD is making Lower Highs!!! This is more prominent if one plays the bars from Tuesday until today and cross-checks the MACD movement

From individual stocks, LnT has given a clean break-out from the downward trending channel it got into from the interim highs of Feb '11. Clearly in buy the dips mode to the extent it keeps closing above 1275 for T1 = 1350 / T2 = 1400 / T3 = 1450....IMHO of course

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