Market Analysis With Megh Mody

Reliance Infra: Reliance Infra bounced from 50 SMA and closed above the previous day high gaining about 4% on Friday. The overall trend looks to be negative as the stock is making lower high and lower low formation. R infra has given a bearish breakout of cup and handle pattern on Thrusday. Now it is very important for this stock to remain in a range of 555-530. A decisive move above 555 will open up positive possibilities and stock can move upto 570. As per wave perspective, the stock is moving in a corrective fashion and started 3 wave i.e simple zigzag on downside (a-b-c). Now it is very important for this stock to remain in the downward channel for next two days which will resume the downtrend.  A move below 520 will suggest that it has formed double zigzag (a-b-c-x-a-b-c). In short, expect R infra to hover near the resistance of the upper trend line of the falling channel. Move above 555 will change the trend and move below 520 will be the sign of resumpti...

USDINR USDINR is moving sideways direction for almost a week within a range of 55.60-54.20. It is very essential for this pair to give a break on either side of the extremes to give a clear direction. Prices failed to cross its previous high and faced the resistance of 61.8% retracement of previous down move (56.50-54.20). The currency pair opened at 55.38 made a high of 55.48 and closed below the open price, thus eradicating all gains. As per wave perspective, prices a forming a simple correction (a-b-c) as price completed wave A at 54.20 and is moving lower, a break below 55 will confirm that wave B is ongoing. In short, our bias is negative USDINR as it will come down to test its lower extreme of the range placed at 54.50. EURINR EURINR bounced back form the lower trend line of the rising channel. The overall structure is positive as the currency pair is forming higher high and higher low. EURINR took a support at 61.8% retracement and managed to move above 72.30 whic...

From past nine months after making an important pivot low of 4770 prices started to form higher high and higher low which is a health sign and precisely moving in a rising channel. The overall structure looks positive for Nifty and can move higher from this levels. Nifty resisted to 5950 for many trading sessions and opened with a gap up, thus crossing the important level of 5950. Now 5950 followed by 5840 will act as an crucial support for Nifty to achieve 6150 level. Again minor supports are  placed at 5980 levels which can be utilized as a stop loss for intraday trading. Nifty opened with gap up for consecutive 2 days and moved in a sideways direction in the entire day. This was previously happened in April 2011 where Nifty opened with a gap up twice and moved up more than 500 points. Moving Averages  20 EMA and 50 SMA is positively poised  as 20 EMA is still above 50 SMA. Momentum Indicator RSI has exhibited negative divergence and we are cautiously positive fo...