Weekly Review

JAY SWAMINARAYAN

We said last week   “   Nifty will be traded with negative bias below 5750 and it would be decline towards 5660 – 5570. Other hand above 5750 Nifty will be traded with positive bias and it would be tries to touch 5840 – 5930.   “   We suggested Strategy:   [1]  Open short below 5750 with stop loss 5840 for targets 5710 – 5660 – 5620 - 5570.   [2]  Open long above 5750 with stop loss 5660 for targets  5840 – 5870 – 5930 – 5960.

Nifty opened positive and traded expected. In first half Nifty registered low of 5789.80 than turned up and gave smart rally towards 5930. Nifty registered high of 5924.60 in second half but faced selling pressure near 5930 and on last day of the week Nifty lost some gain. Nifty gained 88 points (+ 1.53 %) and closed in green.

                                    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.

This is the small & truncated week with holiday on Wednesday. Hence we expect volatility to remain in the market, so be cautious and trade carefully.

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 = 5789.85 , HI = 5924.60 , LO = 5789.80 , CL = 5871.45.