After a volatile week, do we say markets are ready to calm down? Moreover are they ready to move higher as was felt earlier in last week? We are in F&O expiry week.
Technical Overview: Last week Nifty made high of 8655 and low of 8498. A narrow range of around 157 points forming a red candle. In my 6th July post I had mentioned resistance to Nifty near 8643-8756. Nifty is now reacting to that resistance. Current Nifty chart tells us that there is nothing wrong with bullish setup. On daily chart Nifty is changing its cycle from Lower top lower bottom to higher top higher bottom.
And current fall seem to be one such higher top formation. For this to
confirm Nifty should not move below next support at 8470-8425.
Next support is in the range of 8377-8315
Short Term (Few days to a Week) : It
would be difficult to sell Nifty after it has fallen so much. So even
for aggressive traders, I would suggest a buy on dip. If Nifty trades
near 8450- that can be good buying opportunity to buy for short term.
Medium Term (Few weeks to a month): We are still in bullish setup. Wait patiently for
Nifty to settle at its support, let it give confirmation that it wants
to move up. One can get a good medium term Nifty trade.
Long Term (Few months to Year): Nifty remains to be in bull market and be on long side of the market.
NIfty Daily Chart
Bank Nifty: BANKNIFTY is expected to trade choppy with negative bias till expiry. It has support near 18508-18409 level.
CNX IT is trying to enter into the formation of Higher To Higher Bottom. A good support near 11306-11123 can be a buying opportunity.
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Above prices are spot prices. Entry price is considered as opening price of next trading day (Monday).
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