Weekly Review

JAY SWAMINARAYAN

We said   “   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 it would be tries to test 5300 – 5390.   We suggested    Strategy:    [1]  Open short below 5210 with stop loss 5300 for targets 5170 – 5120 – 5080 - 5030.   [2]  Open long above 5210 with stop loss 5120 for targets 5260 – 5300 – 5350 - 5390.

Nifty opened with bear gape and traded expected. In first half Nifty tried to hold 5120 but once it breach 5120 than it declined sharp towards 5030 and achieved our both down side targets. Nifty registered low of 5033 than it tried to recover losses on Friday and succeed to close at 5100. Nifty lost 105 points ( - 2.02 % ) and closed in red.

                           For This Week

We expect Nifty will be traded with negative bias below 5120 and it would be decline towards 5030 – 4940. Other hand above 5120 Nifty will be traded with positive bias and it would be tries to test 5210 – 5300.  Nifty have 1^st Sup. at 5080 – 5030 & 2^nd Sup. at 4990 – 4940 and Nifty find 1^st Res. at 5170 – 5210 & 2^nd Res. at 5260 – 5300.

Be cautious and trade carefully because of RBI Monetary policy announcement on Tuesday. Hence we expect volatility to remain in the market.

Strategy:

[1]  Open short below 5120 with stop loss 5210 for targets 5080 – 5030 – 4990 - 4940. 

                                                                                               

[2]  Open long above 5120 with stop loss 5030 for targets 5170 – 5210 – 5260 - 5300.

NIFTY :: OP = 5163.25 , HI = 5164.20 , LO = 5032.40 , CL = 5099.85.