Nice Close !!!!

Nifty gave a positive close above 2960 (it closed at 2979). I presume this should be treated as a positive sign.

In short to medium term we may target 3080 - 3120 levels and then a re-test of the recent high of 3240.

Assume crucial support now as 2810.

I presume even the chart formation of BANK NIFTY is quite interesting and readers may want to evaluate it and post their comments on this blog !!!

Happy trading !!

CA Rajiv D Khatlawala
Head of Research and Training
Jhaveri Securities Ltd.

Nifty - readying for the next leg ?

The Nifty closed near an important support level today - at 2920.

The price formation of the Nifty along with medium term moving averages and retracement analysis suggest that a turn now from this level beyond 3000 should actually lead to a larger and speedy rally, beyond 3240.



Fundamentally it may coincide with the announcement of the stimulus package and the markets' reaction to it.

I would look forward for a close above 3000 to get a better cue on the next leg up.

Till then - wait and watch is the best mantra !!

Happy trading

CA Rajiv D Khatlawala
Head of Research and Training
Jhaveri Securities Ltd.

Nifty - at a critical juncture!

NIFTY 's rise has been slow and steady from the break out of 2800 and it touched a high of 3100+ today.

I presume there is strong resistance level of 3150-3175 on upside and on the lower side, a support at initially 2990 and then a crucial one at 2930. A break below 2930 would negate the current bullishness on the price charts.

While the Nifty is nearing overbought region, so are the frontline stocks. Most of them have reched their target resistance levels.

Happy trading

CA Rajiv D Khatlawala

IDFC - readying for another up move

At the outset, SORRY FRIENDS !!! I could not update the Blog for past few days as I was tied up in various activities / training sessions

Well since my last post, the market gave the anticipated break out on the up side and has today touched 10K again (Nifty 3K).

Just when all were busy worrying that the Sensex is set for 6000 , the markets rebounded and touched 10000! Nothing new - That's is usual for the markets to behave - only we technicians must have the faith to believe that 'they' are wrong once again!

One stock which has seen some good buying and has formed a double bottom trend reversal is IDFC - yes it remains my favorite.

The chart indicates that even the RSI and MACD gave positive divergences and more significantly the MACD has entered positive zone.



I expect some small resistance at Rs 75 and a target near to Rs 84-88 for the stock. Keep stoploss at Rs 59 for any long trading positions.

Happy trading !!

CA Rajiv D Khatlawala

NIFTY - at a crucial juncture !!!

The Nifty opened down gap today on the back of weak US and Asian markets but subsequently recoevered to close near yesterday's close.

Technically, specific advanced indicators are suggesting that we are near to a crucial technical trigger levels.

Resistance zone on upside is at 2800-2840 levels while support is near 2550-2575 levels. I expect that once these levels are crossed - either side break out - one should then see a 300 point Nifty move.



Many frontline stocks are near to support levels / previous low levels which were made when there was heavy FII selling. Now that FII are not selling heavily, the only logical conclusion can be of accumulation at lower levels (by interested parties)rather than actuall selling. Hence I am looking forward for a upward break out rather than a downward one.

Time shall tell but till then we keep our fingers crossed - ( which I think we already have done!!)

Happy Trading
CA Rajiv D Khatlawala
Head of Reasearch and Training
Jhaveri Securities Ltd.