Sunday, July 7, 2013

Nifty macro and micro analysis for week ending 12 July 13

Nifty macro and micro analysis  for week ending 12 July 13

3 years weekly nifty chart analysis  is indicating that nifty is bullish till it is trading above 5830 ..advised to stay long in nifty with stop loss at 5828 for target 6000  6100  ..reverse positional trade if trades below 5800 with volumes..


daily nifty chart is showing next channel at 5830  5920  ,,,keep sl  below 5830 for log trades ..which may be shifted up if moves above 5930 .





Nifty hourly chart is looking healthy and supporting bulls above 5850 …money is coming in markets so expct more powerful moves in coming week…

nf hourly

Seeing all this it is predicted that market bias is positive and we may expect nifty to trade above 5920 next week so expect nifty range  5830  to 5990 for coming week .

Definition of ‘Money Flow Index – MFI’

A momentum indicator that is used to determine the conviction in a current trend by analyzing the price and volume of a given security. The MFI is used as a measure of the strength of money going in and out of a security and can be used to predict a trend reversal. The MFI is range-bound between 0 and 100 and is interpreted in a similar fashion as the RSI.

The money flow index is calculated by using the following formula:

Typical Price = (High + Low + Close) / 3

Money Flow = Typical price * Volume

Money Ratio = Positive Money Flow/Negative Money Flow

Note: Positive money values are created when the typical price is greater than the previous typical price value. The sum of positive money over the number of periods used to create the indicator is used to create the positive money flow – the values used in the money ratio. The opposite is true for the negative money flow values.

Money Flow Index = 100 – (100/ (1 + Money Ratio))

The money flow index is similar to the relative strength index (RSI). The fundamental difference is that the MFI also accounts for volume, whereas the RSI only incorporates price. Many traders watch for opportunities that arise when the MFI moves in the opposite direction as the price. This divergence can often be a leading indicator of a change in the current trend. (7/6/2013 10:25:06 AM): it was predicted last week “possible range for coming week may be 5700 5930 …if 5930 breached with volumes nifty will trade above 6100 … 5845 and 5930 are two hurdles… ” and Nifty traded between 5760 – 5904 before closing at 5867 up 0.44 % ,

Watch video on money flow indicator

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Nifty macro and micro analysis for week ending 12 July 13

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