Weekly Review

JAY SWAMINARAYAN

We expect Nifty will be traded with negative bias below 5840 and it would be decline towards 5750 – 5660. Other hand above 5840 Nifty will be traded with positive bias and it would be tries to test 5930 – 6020.   “   We suggested Strategy:   [1]  Open short below 5870 with stop loss 5980 for targets 5840 – 5780 – 5750 - 5690.   [2]  Open long above 5870 with stop loss 5780 for targets  5930 – 5980 – 6020 – 6070.

Nifty opened negative and traded expected. In first half Nifty traded weak and registered low of 5823.15 after that Nifty recovered smartly on account of credit policy review by RBI on Tuesday. Nifty registered high of 5939.40 but failed to sustain above 5930 so turned back and declined sharp towards 5840 in second half. Nifty lost 31 points ( - 0 . 54 % ) and closed in red.

                                  For This Week

We expect Nifty will be traded with negative bias below 5840 and it would be decline towards 5750 – 5660. Other hand above 5840 Nifty will be traded with positive bias and it would be tries to test 5930 – 6020.  Nifty have 1^st Sup. at 5800 – 5750 & 2^nd Sup. at 5710 – 5660 and Nifty find 1^st Res. at 5890 – 5930 & 2^nd Res. At 5980 – 6020.

This is the small & truncated week with holiday on Tuesday and also the F & O expiry in this week, so be cautious and trade carefully. Hence we expect volatility to remain in the market.

Strategy:

[1]  Open short below 5840 with stop loss 5930 for targets 5800 – 5750 – 5710 - 5660. 

          

                

[2]  Open long above 5840 with stop loss 5750 for targets  5890 – 5930 – 5980 – 6020.

NIFTY :: OP = 5860.50 , HI = 5939.40 , LO = 5823.15 , CL = 5847.70.