Weekly Review

JAY SWAMINARAYAN

We said   “   Nifty will be traded with negative bias below 4850 and it would be decline towards 4760 – 4670. Other hand above 4850 Nifty will be traded with positive bias and it would be tries to test 4940 – 5030.   “   We suggested    Strategy:   [1]  Open short below 4850 with stop loss 4940 for targets 4760 – 4670.   [2]  Open long above 4940 with stop loss 4850 for targets 5030 – 5120.

Nifty opened flat and traded expected. In 1^st half Nifty declined sharp towards 4800 and registered low of 4804 than it turned up in 2^nd half above 4900 and succeed to close above it. Nifty gained 28 points ( + 0.59 % ) and closed in green.

                                 We Succeed

Ø  We said in our 13-05-2012 weekly review when Nifty closed at 4928.90.

Ø  Between 4850 – 4760 Nifty should be find strong support, so if Nifty comes between this level than open long with stop loss 4670. Between 5030 – 5120 Nifty should be find strong resistance, so if Nifty comes between this level than open short with stop loss 5210.

                                  Our Success

      Nifty registered low of 4789 on 18-5-2012 than turned up sharply and registered high of 4956. Thus Nifty gained more than 160 points in just 3 trading session.

      Again Nifty registered low of 4803 on 23-5-2012 than turned up sharply and registered high of 4935 in just 3 trading session. Thus Nifty gained more than 130 points.

o   Remember Nifty declined from 5300 and lost 400 points in 3 weeks when we warned you.

                              For This Week

We expect Nifty will be traded with negative bias below 4940 and it would be decline towards 4850 – 4760. Other hand above 4940 Nifty will be traded with positive bias and it would be tries to test 5030 – 5120.  Nifty have 1^st Sup. at 4900 – 4850 & 2^nd Sup. at 4810 – 4760 and Nifty find 1^st Res. at 4940 – 4990 & 2^nd Res. At 5030 – 5080.

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 4940 with stop loss 5030 for targets 4850 – 4810 – 4760 - 4720. 

           

[2]  Open long above 4940 with stop loss 4850 for targets 4990 – 5030 – 5080 - 5120.

NIFTY :: OP = 4888.50 , HI = 4956.35 , LO = 4803.95 , CL = 4920.40.