Weekly Review

JAY SWAMINARAYAN

We said last week   “   Nifty will be traded with negative bias below 8090 and it would be declines towards 8000 – 7910. Other hand above 8090 Nifty will be traded with positive bias and it would be tries to touch 8180 – 8270.   “   We suggested Strategy:   [1]  Open short below 8090 with stop loss 8180 for targets 8050 – 8000 – 7960 - 7910.   [2]  Open long above 8090 with stop loss 8000 for targets  8140 – 8180 – 8230 – 8270.

Nifty opened negative and traded expected. In first half Nifty registered high of 8159.90 but faced resistance near 8180. After that Nifty turned back towards our shorting level and declines sharp towards 7850. Nifty achieved our both down side targets and registered low of 7841.80 in second half. Nifty lost 152 points ( - 1.88 %) and closed in red.

                              

                              For This Week

We expect, Nifty will be traded with negative bias below 8000 and it would be declines towards 7910 – 7820. Other hand above 8000 Nifty will be traded with positive bias and it would be tries to touch 8090 – 8180.  Nifty have 1^st Sup. at 7960 – 7910 & 2^nd Sup. at 7870 – 7820 and Nifty find 1^st Res. at 8030 – 8090 & 2^nd Res. At 8120 – 8180.

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

Strategy:

[1]  Open short below 7960 with stop loss 8050 for targets 7910 – 7870 – 7820 - 7780. 

            

                                     

[2]  Open long above 7960 with stop loss 7870 for targets  8000 – 8030 – 8090 – 8120.

NIFTY :: OP = 8084.45 , HI = 8159.90 , L0 = 7841.80 , CL = 7968.85.