Weekly Nifty View: Nifty recovers above trendline support, shows strength

Support of 5,190 points level is crucial


S&P Nifty close: 5,342.10

Markets Trend
Short Term: Sideways              Medium Term: Sideways                  Long Term: Down
The bulls finally succeeded in pushing the Nifty higher after it completed slightly more than 50% retracement of the recent rise from 5,032-5,448 points. We can see from the chart above that the benchmark has bounced from the 20 WMA and closed above the crucial trendline support (in blue). Last week’s recovery saw the Nifty gain 84 points (1.59%) but on significantly lower volumes, implying that this recovery requires some more crutches if it has to survive longer.
All the sectoral indices ended in the green. The sectoral indices which outperformed were CNX Media (+5.90%), CNX IT (+4.45%), CNX Realty (+2.66%), CNX Auto (+2.27%) and CNX PSU Bank (+2.10%) while the underperformers were CNX Metal (+0.82%), CNX PSE (+0.75%), CNX Finance (+0.67%), CNX Pharma (+0.56%) and CNX FMCG (+0.14%). The histogram MACD has moved lower but remains above the median level indicating that the bulls are in control.
Here are some key levels to watch out for this week 
 As long as the S&P Nifty stays above 5,301 points (pivot) the bulls will be in control.
 Support levels in declines are pegged at 5,256 and 5,170 points. 
 Resistance levels on the upside are pegged at 5,387 and 5,433 points.
Some Observations
The Nifty has completed slightly more than the 50% retracement levels of the recent rise from 5,032-5,448 points which was pegged at 5,240 points.
The ‘gap’ area between 5,246-5,260 was closed thus making the game slightly more even stevens at this moment even though the bulls hold the edge.
We are witnessing a big triangular movement in the Nifty on the weekly charts implying that unless and until we break-out on either side, this kind of dullness will continue with sudden spurts of activity in between.
We can see from the weekly chart above that the bulls defended the trendline in blue (pegged around 5,264) points thus retaining their control at least for the time being.
Now the trendline (in black) pegged around 5,420 points has to be taken out decisively on high volumes for the bulls to dominate.
The bulls have succeeded in holding the Nifty above the crucial 61.8% retracement of the recent rise from 5,032-5,448 points as well as the 38.2% retracement of the rise from 4,770-5,448 points which are pegged at 5,190 points. This level is very crucial from a medium-term perspective and the bulls will have to defend it come what may, otherwise they will relinquish control. After the Fed it has been the turn of the ECB chairman to talk up the markets and they have succeeded in doing so, at least for the time being. Anyways the important level to watch out for now is the trendline resistance in black. One can expect a small correction from the 10th or 11th September but unless and until the 5,190 points level is broken there is no major scare for the bulls except the trendline support in blue (pegged at 5,300) which comes in play during the weekend. If the volatility increases slightly the market is a trader’s delight more than anything else as the boundaries at both ends are fairly clearly defined.
(Vidur Pendharkar works as a consultant technical analyst & chief strategist at


The Big Secret For The Small Investor: Breakthrough investing approach

A disarmingly simple way of investing: buying a value index. When will Indian funds launch...

Premium Content
Monthly Digital Access


Already A Subscriber?
Yearly Digital+Print Access


Moneylife Magazine Subscriber or MSSN member?

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Manmohan Singh asks people to stand up against attitude of disruption

The Opposition chose not to take advantage of the subtle institutional practices dealing with the reports of CAG and insisted on disrupting Parliament, accused the Prime Minister

New Delhi: As turmoil-ridden monsoon session of Indian Parliament ended, Prime Minister Manmohan Singh on Friday hit out at main opposition Bharatiya Janata Party (BJP) for "total negation" of democracy and asked people to stand up against such attitude of disruption, warning that it would be a "grave violation" of Parliamentary politics, reports PTI.
He maintained that the Comptroller and Auditor General (CAG) report on coal block allocation should have been discussed in Parliament and Public Accounts Committee (PAC) but the Opposition chose to cause disruptions.
"We have just ended a wasted session of Parliament. Both the Houses were paralysed because CAG has issued a report which rightly or wrongly has certain allegations about public functionaries," Singh told reporters outside Parliament shortly after the end of Monsoon Session.
"We have great respect for the institution of CAG, but if we do respect this institution, we must be willing to debate its finding in PAC or even on the floor of Parliament which we have always been willing," he said.
Without naming BJP, Singh said, "The Opposition chose not to take advantage of the subtle institutional practices dealing with the reports of CAG and insisted on disrupting Parliament. This is negation of democracy." 
He warned that "If this thought process is allowed to gain momentum it will be a grave violation of Parliamentary politics as we have understood." 
Parliament could work only on six out of 19 days of sittings because of BJP's unrelenting demands for resignation of the Prime Minister over the coal block allocation issue besides cancellation of allotments and setting up of independent inquiry.
The Prime Minister said a paralysed Parliament was a "total negation" of the functioning democracy that India is and appealed to the countrymen to stand up unitedly to allow functioning of such democratic institutions.
"I would like my countrymen and countrywomen to make up their mind if this is the right way to serve our functioning democracy. We take pride in the fact that since Independence, we have been a practising and functioning democracy," he said.
"What we have witnessed in this session is a total negation of that and all right thinking people in our country should stand up and unitedly come up in (one) voice that come what may, Parliamentary institutions must be allowed to function with the norms as we have known them since Independence," Singh said.
He said Parliament was not allowed to discuss important issues facing the country like problems of rising communal tensions, regional and ethnic tension, terrorism, and naxalism.
"Parliament should have debated these issues. Parliament was not allowed to discuss these important issues before the country," he said.
Singh said the government was trying to prevent India getting affected by difficulties like recession faced by the global economy.
"Parliament should have discussed these issues. What is our economic strategy to deal with these global developments, Parliament was not allowed to do any of these things," he said.
"The result is Parliament -- a forum where we articulate our peoples' felt needs and felt urges -- was totally paralysed," Singh said.




4 years ago

We, the people, very much want parliament and all democratic institutions to function smoothly. PM using words like ‘rightly or wrongly’ or even ‘confusion’ while referring to contents of CAG’s report, give us an impression that even PM is biased. Events during and after this session of Lok Sabha do not justify the initial responses of PM and his colleagues about the ‘disputed’ CAG report. Parliamentary democracy is much beyond ‘managing’ numbers while voting or getting ‘nominated’ to positions. If anything, the stalemate in the last session of parliament proves the failure of political leadership and aam aadmi or the voter is less concerned whether it is UPA’s failure or NDA’s failure. PM has to play a more proactive role to reach amicable settlement in national interest faster in such situations. If he also starts blaming the nearest pillar or post for failure of governance, who can save this country?

Mr Hi Fi

4 years ago



Rajan Manchanda

4 years ago

Dear Mr.Prime Minister

Honesty is your back bone.Every Indian believes and rightly so that we have a Prime Minister who is truly honest.Why then allow corruption to breed ? Why not order an inquiry right away ? In a Country where a large population lives under poverty line with out two square meals a day,with out medical facilities lack of power,lack of education facilities forget even having toilets and farmers committing suicides,we see corruption of a magnitude unheard off. We are probably breaking all world records.Even Countries where the kings and rulers who have been dethroned did not amass wealth to this extent. What are we waiting for ?

India still has hopes on you Sir.Please speak up, Act and save the Country from disaster.


4 years ago

Sorry, Mr. Prime Minister.
We have already stood up against "corruption" !!!

Can you please do us a favour, Sir? ...... that will make us sit and we will think of standing up again against "disruption" then !!
........................ Please RESIGN Mr. Prime Minister!!! We need to relax ! Sir.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)