Weekend Nifty Views for March 2 - Manoj Bhagra

Nifty had done practically nothing, all through the last week. Take a look at the last weekly bar and you will know what I mean by Nothing! So far we have just avoided falling in tandem with S&P/DOW but I really wonder how long will we hold our own. The broad weekly range is shaded in blue.

I have very often commented that whenever the price stretches to far away from the MAs, it always reverts to the mean, or moves sideways so as to enable the MAs to come within striking distance to further enable a valid crossover or generate a reaction. I have illustrated this in the weekly chart below. All through last week we were talking about 2850 as a resistance to reckon with, well the 20-period MA on the weekly is right about there.



Like I mentioned earlier, nothing in particular to write about Nifty. The levels it seems are very clearly 2850 and 2700 for bullish and bearish bias respectively. The daily shows the coil which is almost defunct now since we have moved to close to the apex while we have the 20- and the 50-period MAs placed horizontally overhead to provide adequate resistance.


The hourly is a self-illustrating chart. Nothing to explain in there. The resistances are already marked with fibs and MAs. As regards to supports, the less said the better, because frankly there isn’t just any REAL support. Personally I wouldn’t be comfortable trading Nifty right now but for people who are positional long 2680-2700 is a good place for stops.



"Nothing great was ever achieved without enthusiasm." - Ralph Waldo Emerson