I have attached Daily & Weekly charts of Nifty. The daily chart is clearly showing an ADAM & EVE BOTTOM, which means nifty is due for some more upsides till 5270 to 5300. NIFTY weekly is showing an inv H&S, which if nifty resits at 5300 & starts coming down could turn into a H&S, so that being the caution mark, if all goes well nifty is headed towards 5950. Weekly RSI on nifty confirms upsides,so the likely hood of 5300 breaking & projecting a tgt of 5950 is pretty high. With the amount of Bearishness around i think the likelihood of upsides in markets are pretty high.
BANKS, AUTOS will continue to be the best picks from out performer group, while infra is clearly a buy looking at the bottoming formation seen on them. Given nifty is likely to trade higher, its a good time to buy for very decent gains.
As anticipated by the chart, 5300 has been achieved & its struggling a bit over there, large part of that reason might bee the gap that has appeared on the charts. There is a good possibility of a halt here with a retracement due. Either we dont fill the gap in that case we may come down till 5220 or if we do fill it then 5098 will be a crucial level close below that will attract more bearishness otherwise we can expect more upsides as showed in the charts. 5930 roundabout looks like a good bet by diwali.
Nifty has been kind of trading sloping boxes, I am sure darvas would be proud of these boxes as well
Right now the resistance line is at 5425 to 5500 depending on which line to pick, which is also a bit of confusion right now. Also as the line is downward sloping, next week the line would be even lower. the slope is 18 points. Now the simplest way to put my analysis is that these are the res zones, if we manage to get above them then the next box will have a high around 6100 levels & something we should be expecting according to this chart of mine. supports can be expected at the lower line which is around 5000 right now. I have tried attaching the metastock file so that anyone using metastock can use this chart & do something else to figure out another insight.
The chart is updated till 13th aug wheni prepared it, but was not able to put in on the site.
Any comments or criticism is welcome, i am sure i dont own this thread