Weekly Review

JAY SWAMINARAYAN

We said last week   “   Nifty will be traded with negative bias below 8630 and it would be declines towards 8540 – 8450. Other hand above 8630 Nifty will be traded with positive bias and it would be tries to touch 8720 – 8810.   “   We suggested Strategy:   [1]  Open short below 8630 with stop loss 8720 for targets 8590 – 8540 – 8500 - 8450.   [2]  Open long above 8630 with stop loss 8540 for targets  8680 – 8720 – 8770 – 8810.

Nifty opened positive and traded expected. In first half Nifty registered high of 8788.20 and almost achieved our both upside targets. After that Nifty turned back towards our shorting level and declined sharp towards 8540. Nifty achieved our 1^st down side target and registered low of 8553.00 in second half. Nifty lost 76 points ( - 0.90 %) and closed in red.

                                    For This Week

We expect same, Nifty will be traded with negative bias below 8630 and it would be declines towards 8540 – 8450. Other hand above 8630 Nifty will be traded with positive bias and it would be tries to touch 8720 – 8810.  Nifty have 1^st Sup. at 8540 – 8500 & 2^nd Sup. at 8450 – 8410 and Nifty find 1^st Res. at 8630 – 8680 & 2^nd Res. At 8720 – 8770.

We expect volatility to remains in the market on account of F & O expiry in this week. Hence be cautious and trade carefully.

Strategy:

[1]  Open short below 8590 with stop loss 8680 for targets 8540 – 8500 – 8450 - 8410. 

                                                 

[2]  Open long above 8590 with stop loss 8500 for targets  8630 – 8680 – 8720 – 8770.

NIFTY :: OP = 8656.75     , HI = 8788.20 , LO = 8553.00 , CL = 8570.90.