Weekly Review

JAY SWAMINARAYAN

We said   “   Nifty will be traded with negative bias below 5570 and it would be decline towards 5480 – 5390. Other hand above 5570 Nifty will be traded with positive bias and it would be tries to touch 5660 – 5750.   “   We suggested Strategy:   [1]  Open short below 5570 with stop loss 5660 for target 5530 – 5480 – 5440 - 5390.   [2]  Open long above 5570 with stop loss 5480 for target  5600 – 5660 – 5690 – 5750.

Nifty opened with bull gape and traded expected. In first half Nifty opened strong and registered high of 5652 but faced selling pressure near 5660 thereafter Nifty turned back and registered low of 5535. On Friday Nifty turned up and gave smart rally above 5700. Nifty almost achieved our both upside targets and registered high of 5720 in second half. Nifty gained smart 113 points ( + 2.03 % ) and closed in green.

                                For This Week

We expect now, Nifty will be traded with negative bias below 5660 and it would be decline towards 5570 – 5480. Other hand above 5660 Nifty will be traded with positive bias and it would be tries to touch 5750 – 5840.  Nifty have 1^st Sup. at 5660 – 5620 & 2^nd Sup. at 5570 – 5530 and Nifty find 1^st Res. at 5720 – 5750 & 2^nd Res. At 5800 – 5840.

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 5660 with stop loss 5750 for targets 5620 – 5570 – 5530 - 5480. 

[2]  Open long above 5660 with stop loss 5570 for targets  5720 – 5750 – 5800 – 5840.

NIFTY :: OP = 5631.75 , HI = 5720 , LO = 5534.90 , CL = 5691.15.