The European Central Bank agreed to launch a new and potentially unlimited bond-buying programme to lower struggling euro zone countries` borrowing costs and draw a line under the debt crisis, ECB President Mario Draghi said on Thursday.European shares gain almost 3% and U.S stocks up 2%.
I don't
understand why people follow Mental-Funda when Technical Analysis is So
Powerful Tool for Trading. Nifty 4900 put OI added more than 10 lakh shares in open interest. Is that smart money buying or that is a expectation buy by retails investors in expectation that ECB will not do any thing positive for Market. Currently SGX nifty is trading at 5310 at the time of typing.
In the chart above you will see that Nifty has taken three time support at lower Bolinger band since nifty made low at 4770. Bolinger band is providing important information as shown on daily chart above. Daily chart shows that prices have given spike below the lower end of the Bolinger band for the 3rd time since the bottom of 4750. Prices have recovered twice before and it is important to see that if prices can bounce back this time as well from here or not. Currently if we see on world indices all U.S and European stock are on the boom so hope that Bolinger band will provide stop this time also.
In current situation conclusion is that, the level of 5217 should not be broken on closing basis for the next up leg to start from here. However, we need first positive price confirmation nifty should be sustain above 5270 levels. A break below 5217 will increase the risk for bulls. But, the probability of below 5217 is low as of now.
