Weekly Review

JAY SWAMINARAYAN

We said last week   “   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.   “   We suggested 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  5690 – 5750 – 5780 – 5840.

Nifty opened with gape up near 5750 and traded expected. In first half Nifty registered low of 5738.20 then turned up and gave smart rally towards 5930. Nifty registered high of 5932.00 in second half but faced strong resistance at 5930 so Nifty declined sharp towards 5800 on last day of the week. Nifty gained massive 190 points (+ 3.00 %) and closed in green.

                            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 touch 5930 – 6020.  Nifty have 1^st Sup. at 5800 – 5750 & 2^nd Sup. at 5710 – 5660 and Nifty find 1^st Res. at 5870 – 5930 & 2^nd Res. At 5960 – 6020.

We expect volatility to remains in the market on account of RBI Monetary policy. 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  5870 – 5930 – 5960 – 6020.

NIFTY :: OP = 5738.50 , HI = 5932.00 , LO = 5738.20 , CL = 5850.60.