WEEKLY REVIEW

JAY SWAMINARAYAN

We said    “   We expect Nifty will be traded with negative bias below 5210 and it would be decline towards 5120 – 5030. Other hand above 5210 Nifty will be traded with positive bias and tries to test 5300 – 5390.   “   We suggested    Strategy:   [1]  Open short below 5210 with stop loss 5300 for targets 5120 – 5030.  [2]  Open long above 5210 with stop loss 5120 for targets 5300 – 5390.

Nifty opened weak and traded expected. On Tuesday the market surprised positively by RBI on the account of 0.50 basis points Rate cut ( Umeed se Doguna ) so  Nifty turned up and achieved our 1^st upside target and registered weekly high of 5342. On Friday Nifty declined sharp towards 5245 and closed below 5300. Nifty gained 83 points ( + 1.60 % ) and closed in green.

                              For This Week

We expect Nifty will be traded with negative bias below 5300 and it would be decline towards 5210 – 5120. Other hand above 5300 Nifty will be traded with positive bias and it would be tries to test 5390 – 5480.  Nifty have 1^st Sup. at 5260 – 5210 & 2^nd Sup. at 5170 – 5120 and Nifty find 1^st Res. at 5350 – 5390 & 2^nd Res. At 5440 – 5480.

Be cautious and trade carefully because of F & O expiry in this week. Hence we expect volatility to remain in the market.

Strategy:

[1]  Open short below 5300 with stop loss 5390 for targets 5210 – 5120. 

[2]  Open long above 5300 with stop loss 5210 for targets 5390 – 5480.

                                                                 

NIFTY :: OP = 5190.60 , HI = 5342.45 , LO = 5183.50 , CL = 5290.85.