Nifty continues to move in a downtrend
In our past few updates we had been mentioning that, "Nifty will move down to 5600 as many brokerage houses were expecting it to reach till 6200-6300 mark." - BANG ON!!!
We had also been mentioning that, " Nifty is at crucial juncture, a move above 5970 will provide a breather to bulls but failure to cross this level will take drag Nifty back to 5600." - BANG ON!!!
On the daily charts we can observe a distribution pattern on Nifty, which clearly indicates that a top is been place at 6112. The breakout came on 25th March 2013. Now the picture is very clear that sell on rallies would be the best strategy that can be adopted.
We know the power of moving averages. We have be using this technique in Nifty from some time. We can observe that Nifty has crossed 20 SMA but failed to move above 50 SMA after a bearish crossover. This indicates that the trend remains bearish.
Other oscillators such as MACD is in sell mode, RSI bounced from 30 but prices failing to cross its previous pivot high, OBV and MFI continues to move from sideways to negative.
We had also been mentioning that, " Nifty is at crucial juncture, a move above 5970 will provide a breather to bulls but failure to cross this level will take drag Nifty back to 5600." - BANG ON!!!
On the daily charts we can observe a distribution pattern on Nifty, which clearly indicates that a top is been place at 6112. The breakout came on 25th March 2013. Now the picture is very clear that sell on rallies would be the best strategy that can be adopted.
We know the power of moving averages. We have be using this technique in Nifty from some time. We can observe that Nifty has crossed 20 SMA but failed to move above 50 SMA after a bearish crossover. This indicates that the trend remains bearish.
Other oscillators such as MACD is in sell mode, RSI bounced from 30 but prices failing to cross its previous pivot high, OBV and MFI continues to move from sideways to negative.
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