Nifty Today – Bank Nifty Chart 26th November – 30th November 2018
In this week’s video on Nifty & Bank Nifty, I have extensively covered the subject of Golden Cross in Moving averages. I have explained the basics of Golden Cross and have shown how useful it is to identify long term trends. Parameters used while explaining this concept is 50 day moving average and 200 day moving average. Golden Cross happens when short term moving average moves above the long term moving average from below. Whereas opposite happens when short term moving average moves below 200 day moving average from above.
50 Day moving average and 200 Day moving average have been cornerstone of Technical Analysis since a long time and most traders use these stock market indicators to identify bullish or bearish bias in the market. As far as Nifty and Bank Nifty are concerned, 50 day moving average and 200 day moving average have worked wonderfully in identifying long term trend in market.
I then move to practical application of 50 day moving average and 200 day moving average crossover. I have covered various Nifty Indices to explain my point. I have shown how Nifty Midcap, Nifty Small cap, Nifty Infra, Nifty Auto, Nifty Realty all remain in strong down trend whereas Nifty IT and Nifty Pharma still show some positive signs in overall market. Apart from this, I have also shown crossover analysis for Nifty and Banknifty.
I then move to some global charts where I show how wonderfully this concept works. Whether it is Dow Jones, Crude Oil or U.S. Dollar Index, I have shown the usefulness of moving average crossover in identifying long term trend in market. In the end, I make some key observations about how to approach Nifty 50 and Bank Nifty heading ahead.