Here I attached 3
charts of Nifty. I give clarification one by one.
1) Nifty Weekly 5 year Chart:
Starting of 2008 RSI above 70 & market weak so reached to 2500 from 6300.
From 2008 end to Starting of 2009 market consolidated that time RSI Below 30
& come out above 30 then market breakout & head to 4500-5000-5500. Also
mid of 2009 RSI Overbought but taking good support near 4675-88 it go up (which
more clarify in Nifty 5yr weekly RSI chart). Then 500 point ups & down came
but finally reach very nearer to all time high 6300. In Oct-2010 RSI Overbought
again & confirm near 5750-5500 to exit from market.
2) Nifty 5yr weekly RSI chart: Here
simple analysis that How RSI overbought (above 70) - oversold (below 30) and
what effect on nifty!!! Here I draw one GREEN line which is level of 4675-88
(In Aug-11 I already given post to exit from market here's the link)
Nifty View . Now Pink line draw which is level is 4350 if also
break here then more downside expected.
3) Nifty 1995 to till date Monthly chart:
Here I take two EMA (i) 20 EMA & (ii) 200 EMA. Nifty go below 20 when it traded
near 4500 in starting of 2008 & straight way go to 2500 means 2000 point
downside & taking support of 200EMA. These all "TECHNICAL ANALYSIS" so in Technical Analysis there is
RULE that "HISTORY REPEAT
ITSELF" Currently if we follow same strategy then recently Nifty break
monthly 5220 then 2000 point downside means 3200 will come. Where exactly 200 EMA lying & currently
200EMA is roughly near 3050. So, if Nifty exactly reaches 3200 then mostly 200
EMA also reach 3200. Now we concentrate on MACD
Indicator then currently MACD & EXP(9) lines are too BROAD so, it will
take time to active BULLS. Currently Bears attacked on the street. Last but I
should not ignore RSI Indicator,
When market bottom out in 2009 that time RSI near 35 now RSI near 43. So, below
30 or nearer long term investor deploy their money...
In very short time i also posted Reliance Chart
Why King of Market making 52Week Low & where it stopped!!!
Your valuable reply welcome for this analysis.
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