Saturday, May 15, 2010

The Nifty Heavy Weights

  Nifty and It's Biggest Constituents

Last week was an eventful one for the markets. The Nifty futures actually closed with a gain of some 37 points. However, let's check out the real market action for the past week. The market opened higher on back of the shock and awe European bailout plan on Monday. On Tuesday, the markets tested the Monday's low of 5080 too. Therefore, the markets were expected to test the high of 5108 and the high was tested on Thursday. However, Friday's trading has proved that the markets have failed in its test of 5210 - 5220 range. The proof of the failure is that the futures traded lower and closed below 5080 which was the low on Monday. On the weekly charts, last week's action has lead to the formation of a shooting star or inverted hammer candle which indicates further weakness ahead. 

Nifty Futures - DMA & ATR Chart

The Nifty future has closed below it's 100 DMA for the second week in succession. It may test the 200 DMA at 2975 in the coming week. The 200 DMA also coincides with the future's previous low of 5076. The second panel in the chart above shows the various averages of the True Range of the futures in points. It can be observed from the chart that the TRs increase normally when the market falls and it decreases when the markets rally. The TR has started to increase and it is above it's long term averages at present.  Therefore, traders may expect higher volatility on a day to day basis.

Nifty Heavy Weights - Weightage, Close & DMAs

LT is trading below all of it's DMAs. Reliance and BHEL are trading below their short term DMAs but very near to their 200 DMAs. HDFCBANK, SBIN and TCS are still trading above their 200 DMAs by more than 10 %. INFOSYS, ICICIBANK, HDFC, and ITC are trading above their 200 DMAs less than 10 %. The out performance of these share are also slackening  which may be indicating technical weakness.

Today's edition includes the charts of all the Nifty heavies too. All charts include the price panel as well as the various DMAs panel. Please note that the price panel also includes the regression channel. The center line of the regression channel  shows the trading direction of the instrument for the selected period of the chart. These charts include the trading history of about six months.

Reliance - Daily & DMA Chart

Infosys - Daily & DMA Chart

ICICIBANK - Daily & DMA Chart

LT  - Daily & DMA Chart

HDFC - Daily & DMA Chart

ITC  - Daily & DMA Chart

HDFCBANK - Daily & DMA Chart


SBIN - Daily & DMA Chart

TCS  - Daily & DMA Chart

BHEL - Daily & DMA Chart

Here is the conclusion of this post which is quoted from the last Nifty Heavies edition !

"Since the present downtrend has multiple reasons and is spread all around the world, traders and investors may wait for some time to get some clear signals to go long on the market."

Cheers and Prosperous Investing !!!   

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