Nifty and Bank Nifty Technical Analysis for 06 Nov’13

Nifty as on 05 Nov’13– 6253.15 (-64.20)    Bank Nifty as on 05 Nov’13– 11498.90 (-115.20)

Nifty made a high of 6342.95 just shy of few point to test and post new high on Muhurat Trading Day. Generally, on Muhurat day we don’t see much momentum and that is the reason Nifty traded in a narrow range.

Nifty Daily Chart

On Tuesday, in pre-opening session market traded much lower and which gave a idea that market is going to remain weak during an intraday. Technically speaking, Nifty has marginally broken long trendline, while one minor trendline is still valid, but if we see Sensex chart than it has given break down from long trendline. After sharp move momentum is weakening and which was quite obvious. Bank Nifty made a fresh high but could not sustain and gave away major gains, in support to that CNX IT Index is also weakening and we can’t resist to make a statement that we anticipate some sharp fall in the IT Index.

So, we have early sign of weakness. Risk takers can take fresh shorts if Nifty struggles to hold above 6250 levels, we may take short position below 6230 with stop above 6250. Don’t forget its early signal.

Keep visiting Way2Profits, for unbiased Daily view on the Nifty and Bank Nifty.

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