Nifty Darling

The darling didn't even touch 8315 levels discussed in previous post and took a sharp U-Turn and kissed 8600 mark. It has been trading above its short term moving averages as well as 200 DMA. Besides there is a cross over of 20 & 50 DMA which is quite a bullish signal. On a weekly chart too the momentum has started shifting and the darling is showing signs of steady recovery. The only weekly resistance is placed around 8660-8672 zone which once captured on closing basis we expect 8800-8850 levels quickly.

As per Options data 8500 PE is having highest OI suggesting strong base 8500 level. VIX is trading in very comfort zone around 13-15 mark. So the momentum is clearly in favor of bulls. At this point no short position is advisable.

Nifty Darling

In our previous post it was mentioned that weekly close above 8480 may add more fire however bulls failed to capitalize the move and the darling closed near its 20 WMA. On a daily chart the index has found support around 20 DMA however it has been closing below its 200 DMA for the last three sessions. Putting weekly and daily observations together it seems that the markets are trading in range of 8315-8500 in search of further directions. Short term Bias seems to be slightly bearish as long as 8480 is not captured on a closing basis. The bearish view will be reinforced once the darling closes below 8315.

Nifty Darling- Finds Supports At 200 DMA What Next?

In previous post it was clearly mentioned that weekly close above 8480 levels may prove fatal for the bears and the darling may continue its northward journey intact. As expected the darling witnessed sharp recovery during intraday having opened gap down due to weak global clues. In today's session the darling found exact support at its 200 DMA and took U-Turn which is a clear signal by Bulls that they are in a no mood to weaken their grip. As per Fibonacci Retracement the darling found resistance around 50% placed around 8540 levels. Technically it is dancing above its short term moving averages and has also developed Falling Wedge Pattern on a daily chart which has already been discussed in earlier post. Besides other Technical Indicators are still in a quite bullish territory and VIX closed in red and still in a comfort zone around 16 levels so 8672 levels can be expected in a short term where the Golden Ratio is placed.

So the view is clearly in favor of the bulls and as long as 200 DMA is intact traders should utilize every dip as a buying opportunity. The simple strategy is to jump on the bandwagon rather than bucking the trend when the prices are trending higher. As long as 8380-8390 area is intact the darling may trade with positive bias in sessions ahead. Immediate support at 8480 while immediate resistance 8540.

Nifty Darling

In earlier post it was clearly mentioned that 8190-8220 area is the strong weekly support zone and as expected the darling took U turn from 8191 levels and reached the upper band in no time. For the last couple of sessions the darling is finding resistance around 8480 levels. On a daily chart the it is trading above its 20,50 & 200 DMA which is a positive sign. Besides it seems that the darling has formed Falling Wedge Chart Pattern on a daily chart which indicates the reversal of prior trend. Other indicators too on a daily chart have been the positive territory.

On a weekly chart the darling is hovering around its 20 WMA. During last week it witnessed a gap up opening on weekly chart and bulls have fully capitalize the move. Indicators on a weekly chart too are looking moderately bullish. VIX after kissing almost 19 mark has cooled down and trading in a comfort zone around 15.

In a nutshell the bias is clearly in favor of the Bulls as of now and weekly close above 8480 levels may add more fuel to the fire.