NIFTY View - 30-Sep-2011

NIFTY - It ain't scary till 4700 is breached

The below chart is of NIFTY. It's a weekly chart & hence removes lot of daily whipsaws. As you can see from the charts the Top-Top Trendline is giving NIFTY a strong resistance & currently 4700 levels is providing a good support. 4700 becomes a key support as earlier too has given good support for the NIFTY. Any break of this level on daily & especially weekly closing basis can give a steep fall of 300 odd points. As long as NIFTY is above it & somehow if bulls are able to cross 5100 on the upperside then things doesn't look scary till then.

Going by the way how things are panning out in Euro zone a break below 4700 is more expected from majority of market participants.

NIFTY 2 Years Weekly Line Chart

Market Wisdom: Market seldom does what majority of participants expect & does the opposite & keeps everyone guessing.

Happy Trading / Investing. Would be glad to receive comments from all on the views expressed.

Bharti Airtel - 23-Sep-2011

Bharti Airtel - Head & Shoulders Pattern

Bharti Airtel after reaching 445 levels has fallen down along with the broader market & now has made a Head & Shoulders Pattern. Target for this pattern comes at around 320. This pattern would become invalid with a close above 380 (Full candlestick formation above 380)

Bharti Airtel 1 Year Daily Chart

Market Wisdom: Usually when Markets are in downtrend, Stocks breakdown & more often than not a bearish pattern like a Head & Shoulders plays out. Keep a close watch on the stock.

Update: The stock did go to 345 levels but recovered quickly. So in actuality the H&S dint pan out as expected.