Tag Archives: Deadcat Bounce

Bank Nifty Technical Outlook for 3 June, 13

Bank Nifty Weekly Chart - 12475.65 (-293.70)

Bank Nifty Weekly Chart – 12475.65 (-293.70)

Bank Nifty Daily Chart - 12475.65 (-330.25)

Bank Nifty Daily Chart – 12475.65 (-330.25)

Bank Nifty managed to outperform the market, but due to lack of support from other members it has give up; or you can say others have pulled down. According to Dow Theory, divergence in main indices is a signal to turn alert.

Technical observations from attached chart of Bank Nifty.

  • Last week begin with extreme optimism in market players, that current fall is nothing but just retracement and market will turn positive again; and actually it happened, Monday Bank Nifty moved with enthusiasm and gave positive close. But this euphoria proved short sighted because Bank Nifty struggled to move higher above previous major swing high of 12972, and finally it started giving weak closes.

(To read full report, download)





It is just a Dead Cat bounce or Nifty will rally?

Weekly Outlook –Nifty Spot as on 8 March’13 – 5945.70 

Last week was quite an eventful, nifty moved sharply higher.  And if my readers remember than I have mentioned in my previous article that I will turn my attention on long side only if Nifty spot moves and close above 5875, below which I see every rise as a selling opportunity, but Nifty successfully moved above 5865 on Thursday itself, which was very much evident that Nifty will turn bullish again.

Coming to current situation, I believe Nifty has broken heart of 60% (not based on any data) Bears but still there are few Bears are left, they will be killed once Nifty moves above 6000 level. So it is advisable to take minor longs for now, keeping stop loss below 5875 and increase your position once Nifty moves above 6000 mark, and mind it, if it happens than we’ll be seeing new highs soon…. But keep your fingers cross, still we are sure by 60% and not 100%.  Rest you know how to trade.

I know with some fans there are lot of critics available, and they must be thinking that I am talking on two sides, but for them I am attaching this link, I request them to please read that, I am sure all your doubts will get clear.  Read article