Nifty Technicals & DLF

DLF 

I have recently spotted a wedge formation on the DLF chart for the time being the Stochastics are oversold and the RSI standing @ 41 is now showing a positive divergence. MACD also shall soon converge to generate a buy signal. The stock has also seen volumes increase over the last 5 trading sessions. The stock could definitely now hit 198-200 levels in days to come. 

Buy at / above: 189.06   Targets: 192.41 - 195.9 - 199.41 - 202.96  Stoploss : 185.64

Sell at / below: 185.64   Targets: 182.34 - 178.98 - 175.65 - 172.35 Stoploss : 189.06 

NIFTY 

The Nifty took on a massive rally on Tuesday as we had predicted but our projected high of 4814 has still not been touched. I would remain optimistic about tomorrow although I would start getting bearish or quitely watch what people were doing for a day or 2. The FII's bought 138.97 Crores in cash. The OI in INDEX FUTURES has increased from 406363 contracts (3rd Dec) to 448271 contracts (4th Dec) but they are selling more than they are buying. Ironically Stock Futures OI increased from 980779 to 981231 during which both days they bought more and sold less. 

This leaves me with a feeling that the market may open higher and start to fall apart later hence commencing the larger down move as we had anticipated. Refer to our last blog where we had drawn graph that looked like a possibility of what we may see in days to come.