Weekly Review

JAY SWAMINARAYAN

We said last week   “   Nifty will be traded with negative bias below 5930 and it would be decline towards 5840 – 5750. Other hand above 5930 Nifty will be traded with positive bias and it would be tries to touch 6020 – 6110.   “   We suggested Strategy   [1]  Open short below 5930 with stop loss 6020 for targets 5890 – 5840 – 5800 - 5750.   [2]  Open long above 5930 with stop loss 5840 for targets  5980 – 6020 – 6070 – 6110.

Nifty opened flat and registered high of 5971.20 on Monday than turned back towards our shorting level and declined sharp to achieve our 1^st down side target. Nifty registered low of 5791.75 and took support near 5800 then turned up and tried to recover all the losses but not succeed to sustain above 5930 in second half. Nifty lost 73 points (- 1.23 %) and closed in red.

                                       For This Week

We expect now, 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 touch 5930 – 6020.  Nifty have 1^st Sup. at 5840 – 5800 & 2^nd Sup. at 5750 – 5710 and Nifty find 1^st Res. at 5930 – 5960 & 2^nd Res. At 6020 – 6050.

We expect volatility to remain in the market on account of RBI Monetary policy on Tuesday. So be cautious and trade carefully in this week.

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  5930 – 5960 – 6020 – 6050.

NIFTY :: OP = 5946.10 , HI = 5971.20 , LO = 5791.75 , CL = 5872.60.