Weekly Review

JAY SWAMINARAYAN

We said   “   Nifty will be traded with negative bias below 5390 and it would be decline towards 5300 – 5210. Other hand above 5390 Nifty will be traded with positive bias and it would be tries to test 5480 – 5570.   “   We suggested    Strategy:   [1]  Open short below 5390 with stop loss 5480 for target 5350 – 5300 – 5260 - 5210.   [2]  Open long above 5390 with stop loss 5300 for target  5440 – 5480 – 5530 – 5570.

Nifty opened negative and traded expected.  Nifty declined very sharp below 5390 and achieved our both down side targets and registered low of 5239.  Nifty tried to recover some losses on F & O expiry day but failed to sustain it, so once again declined on last day of the week. Nifty lost 128 points ( - 2.38 % ) and closed in red.

                                     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 5210 – 5170 & 2^nd Sup. at 5120 – 5080 and Nifty find 1^st Res. at 5300 – 5350 & 2^nd Res. At 5440 – 5480.

Strategy:

[1]  Open short below 5260 with stop loss 5350 for target 5210 – 5170 – 5120 - 5080. 

[2]  Open long above 5260 with stop loss 5170 for target  5300 – 5350 – 5440 – 5480.

NIFTY :: OP = 5387.85 , HI = 5399.15 , LO = 5238.90 , CL = 5258.50.