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Monday, 7 April 2014

India NIFTY Index: 6 April 2014, Sunday, 11.59pm Singapore Time

India NIFTY Index: 6 April 2014, Sunday, 11.59pm Singapore Time

Attached above is the weekly chart of India NIFTY Index currently at 6694.35 points.
It has broken 6431.32 points (outer most RED Resistance) and also broken up the BLACK up-channel which means there may be more rally to come. However, this rally will be essentially an unhealthy movement, especially since this was achieved without the support of the volumes (high possibility of fake break-up spike).

India NIFTY is preparing for a sell-off to time in sync with the Indian election results. It may rally and sell off once election results are out.

Two sure case as follows:

If the Indian election result is within expectations or is something of a good news, markets will make a final 1-2 days fake rally to lure the final set of buy-on-news dafts followed by an all out sell-off, as the goodies have already been priced in long ago during the pre-election move in the market.

However, if the Indian election result is out of expectations or is a bad news to the market, the sell-off will be double in strength because the markets will had priced in wrongly during the pre-election movement of the Indian Financial Markets expecting good news. Not only must the pre-election market movement be vomited back, it must be doubly hammered below pre-election minor support made 9 weeks ago at 6000 points.

What is sure is that the market is to remove all uncertainties for the post-election market movements in India by doing a pre-election rally to price in good news in advance. Whatever the Indian election results, just one result awaits: SELL-OFF in NIFTY, SENSEX and Indian Financial Markets. 

What needs to be seen now is whether the RED band of resistance-turned-support will hold or the break-up of the RED Band is just a fake break which would mean high bearishness if so.

With worldwide financial markets turning, India NIFTY, SENSEX and Indian stocks will make the U-turn to go down after elections. The Bollywood partying music is ending and time to get back to real business.

Donovan Norfolk Ang Technical Rating on India NIFTY:
Bullish until the day the election results are out, and bearish after that
(Bearish also on all international stocks and equities)


(Capital flight/exodus from worldwide bank stocks)

(The Great Capital Flight of Emerging Markets)

(Straits Times Index as preview of World Markets)

(Straits Property Index as preview of World Property Markets)

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