Nifty View - DENIP Consultants - Jan 2012 - Dewang K Mehta

Dear All,

The down trend that started on the Nifty since November 2010 from 6300+ levels on the Nifty is under significant threat.


I, have highlighted the tops with the help of a black trendline in the chart below.

We at DENIP Consultants believe that if we see a close above the 5220 mark on the Nifty we could see this downtrend end. A close above 5220 would definitely indicate the beginning of a major up trend which could last at least a year/ year and a half.

However for the short term traders, it would not be a bad point to initiate some speculative shorts. We would advise investors to start deploying cash into banking and metal stocks provided we see a close above 5220.

Do feel free to post your comments / views on the Nifty & get in touch with us in case you need to create a portfolio to encash this rally.

Thanks,
Dewang K Mehta
DENIP Consultants Pvt. Ltd.
Disclaimer Post applies.

Nifty View- October 2011 - DENIP Consultants - Dewang K Mehta

Dear All,

We have been bearish on the Nifty since July 30th 2011 and we even booked profits once around the 4750 levels. At the current levels of 5118, and with today's red tick in the market we are bearish on the Nifty again with a target of 4750. 

Following is a zoomed out version of the Nifty chart which clearly shows that we are in a range bound zone in a falling trend market.

The following chart of the Nifty is the zoomed in version of the range bound trade. Next Target on the Nifty is 4750. We need to wait and watch if 4750 is breached this time or do we find support and continue this range bound trade.

Thanks,

Dewang K Mehta

DENIP Consultants

Disclaimer Post Applies

Nifty View - DENIP Consultants - July View - Dewang K Mehta

Dear All,

In continuation with our view on the Nifty where we did mention a possibility of a break out and we do seem to be in place now with the S&P CNX Nifty closing at 5728 levels. We believe that we should see at least 2 – 3 sessions in the green on the Nifty before we witness a pullback.

For now we should face resistance on the Nifty at the 5740 /5750 level and a close above that should take us to 5800 levels. However we do not rule out a pull back from the 5740 / 50 levels which could happen as early as Friday.

Please click on the image for an enlarged view.

Thanks,

Dewang K Mehta

DENIP Consultants Pvt. Ltd.

Disclaimer Post Applies

Nifty View- July 2011 - DENIP Consultants - Dewang K Mehta

Dear All,

Attached herewith are 2 S&P CNX Nifty charts. If you look at the charts then you will clearly see that the Nifty is facing stiff resistance at the 5720 – 5745 mark due to the resistance line (denoted in red) which has been pretty effective since November 2010.

Our understanding is that although it might be a good level to sell the Nifty, this time around the scenario might just be a bit different. If you look at the numbers then the FII have been buying heavily in our markets and the fall on Friday could be nothing more than profit booking. Monday might turn out to be a more decisive day than ever considering that we already have one close in the red. If we do close in the red on Monday with decent volumes then we might actually witness the Nifty fall back to 5555 levels where it should find some decent buying.

However a close below the 5555 level could essentially see the nifty fall back in the 5400+ region. We advise traders to keep strict stop losses on their long positions and could buy some puts to hedge their long positions. A 100 point fall on the Nifty from the current 5627 level could earn decent money on Puts.

The scenario does change if we do mange to close above the 5730/40 mark. We could have an upside that potentially extends till 6000 levels. If I look at the historical trend in July then the trend has been on the upside with the Nifty gaining a minimum of 100 points in the past 2 years or so. If I was to look at the indicators then all of them suggest that we are overbought but more often than not during a break out these indicators tend to be in the overbought zone.

This time it will be very interesting to see whether we break out or continue the downtrend considering that the FIIs have been buying heavily and the DIIs have been selling. Let’s see who wins this battle but for now trade safe and be light on your portfolio positions.

Thanks,

Dewang K Mehta

DENIP Consultants 

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