Nifty View for Week 17-21 Aug

NIFTY View For Week 17-21 Aug 

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Last week I had indicated at buying opportunity on dip. Hope readers would have been holding the Nifty longs or the they might have bought low cost call options. Among world markets last week, Nifty was least to fall and then recover fast on Friday. Last trading sessions are always crucial- last hour of the day, last day of week, last week of the month and so on. These 'lasts' have power to change sentiments.  

Technical Overview: Last week Nifty made high of 8621 and low of 8337. A range of 284 points. Nifty yet to cross hurdle at 8654 as I had mentioned in my last newsletter. Nifty need to break this level to reach its higher targets which is at 8800. 

Last week I had marked level of 8397-8321 on charts indicating support. Nifty has bounced nicely from this level. Observe carefully, Nifty chart is developing a range between- 8650 and 8300. Nifty need to break this range on either side for it to give us clear direction. For the time being Nifty is in the range and traders need to be cautious and extreme ends of this range. 

Last  weeks Nifty has been closing near its open, however not crossing the upper hurdle. This makes us believe that Nifty may not break the lower level of 8300 for the time being. Chances are it may move beyond 8650.                                                                                                                                                                                              

Short Term (Few days to a Week) : Hourly chart of Nifty is suggesting that Nifty is bit too far overbought to buy at this level. Let it come down, say, by 50-60 points to buy again.                                                        

Medium Term (Few weeks to a month): If someone is holding Nifty long- 8570 is good level to book profits. There is supply zone there on Nifty chart. Nifty may react to this zone.  

Long Term (Few months to Year): Nifty remains to be in bull market and be on long side of the market.

  
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View on important Sectorial Indices: 

Bank Nifty: A new resistance is formed on BANKNIFTY chart near 18875-19075. The bank index may react to this level to take small dip. Support is near 18251-18080. Overall view remains range-bound with Bullish bias till it breaks 18275. 

CNX IT:  Last week I had indicated at an upmove. Now CNXIT is trading at high points, but still looks bullish. Let it correct a bit to buy again. Risk Reward is not favorable at this level to be a buyer. Trade remains on long side.

                                     

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