NIfty Observation

[Mayur Patel]

 Nifty Spot formed a Classic Doji candle on daily chart at top of the move indicating indecision. Fresh upside only abv 8867 spot for next tgt of 8937. Below 8795, we can assume reversal of current uptrend for short term for tgt of 8725-8625. Nifty weekly RSI at 70, Daily RSI at 73.50, PE Multiple at 22.50, PCR at 1.75. Bank Nifty Daily RSI at 73.70, Weekly at 76.50. Four gaps in last six sessions in Nifty spot thus indicating exhaustion. Things are looking overbght and expensive as of now. Lets see how things pan out next week. Also one interesting fact...Nifty spot expiry to expiry difference has never been more than 500 points (with an exception of May 2009 where we saw 1^st upper circuit). Nifty Dec expiry was at 8175, so +500 comes to 8675.

 
 
 
 
Regards,
 
Mayur K Patel
Branch Manager,
Sharekhan Ltd,
Ghatkopar Branch, Mumbai.