Review on Monthly, Weekly and Daily NIFTY charts

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Dear Investor,

Very difficult time to predict any kind of move from stocks. One thing that prevents me from saying that market will go down is the fact that this market has so much buying power. Unimginable buying pressure has been exhibited months after months after month. Begin at monthly highest range, we should expect some profit booking. Earnings season is underway and people are selling stock good news or bad news. They are booking their profits.

I added bollinger bands indicator this time. It measures the amount of volatility in market. Orange color river like bands are indicators of how move larger move is happening on the stock or index. When the bands come very very close, that means there is very less volatility in the market. It depends on the scale you look at. For monthly scale it measures how much month to month volatility. So monthly bands are less volatile than daily or weekly bands. What is important to notice is "when the bands are coming closer that is a indicator of base building and anticipation of a big major move is about to begin." Only thing that it does not tell you is which direction - UP or DOWN?

Above monthly chart is showing NIFTY support is at 5015. Volume is all green indicating constant accumulation. Bollinger bands coming together is sign of new big move might be on the charts.

Above NIFTY weekly chart shows that weekly activity is high. Volality is high. Bands are expanding. Another problem I see is we ae neer that top of the river band this is where stocks reverse and again meet back at the center line. Based on this Weekly support for NIFTY is 5650. Healthy volumes on up side have to be noticed.

Here is the conclusive daily chart. Do you see how much the bands have come together. This is a signal of new major move in happening. UP or DOWN is not predictable. Daily Support for NIFTY is at 5506.

Observe the rea and green volume lines. There is very little volume on down days and observe green volume lines. There is so much buying power. This makes it difficult to predit next move. The best we can say is market will consolidate in 6000-5500 range. You buy at 5500.

I am putting Siemens on watchlist so that you all can learn and study the effect of bolliner bands. See how the bands are pinched together. Lets see after few weeks if a large move actually happens.

This week G20 Currency meeting will shape some trading of next week.

Thanks
Anil
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