Nifty poised @ 200 DMA

The Nifty is again approaching 200 DMA. The market rallied a long way today but closed below 5700. Aclose above 200 DMA is crucial for further up side.

Sun TV may breakout

Sun TV has taken a beating for the past few weeks. Howveer, the stock has gained for the past five successive trading sessions. The stock is on the verge of downward trend line and if the stock close above the trend line then it may move further up.



The stock is also poised at its 50 DMA and if it doesn't face resistance at this juncture then it may register more gains.

Down trend lacks strength

The ADX indicator reflects the strength of the overall trend. Since red line is going steep bears are taking control but ADX value, i.e. grey line, is still less than 30, which means that downtrend will not be sustained for long. Until and unless ADX value moves up dramatically, bear hug may not last for long.

Nifty @ crucial support

After ending at a three-week low level Nifty is at a crucial trendline support. It has bounced back four times on previous occassions. If it drops below from the current level then it may go down all the way to February low.

Nifty support @ 5343

Nifty is heading towards a crucial support level of 5343. Its a long term support and Nifty may witness some bounce back from this level.

IT stocks - Head and Shoulder

CNX IT has formed a head and shoulder pattern on weekly chart. This is a bearish pattern and if the indices falls 2-3% below the neckline, the IT stocks may witness selling pressure. The volumes too have been dwindlnig since the formation of the left shoulder. This also confirms the reversal move.