Monday, October 19, 2015

Tough fight among bulls and bears - NIFTY View For Week 19-22 Oct

We have had a relatively flat week in terms of Nifty closing behind us. Bulls are not giving up. Global cues were mostly mixed with positive bias. 

 Technical Overview: Last week Nifty made high of 8246 and low of 8088. A range of 158 points. This is relatively a small range. Bulls have regained control in last 2 days of last week. 
Nifty has made "Hanging Man" pattern with formation of a "Doji" candle on weekly chart. This suggests top formation.  

Nifty is also trading near resistance at 8225-8322. This area is still intact. In last post I had said that, we man not assume uptrend unless Nifty breaks 8322 to close above this area. 
Wait patiently for Nifty to give clear signals and then take a trade.  

This is what I feel- Nifty may not be able to cross 8322 so easily. A possible dip can come and may take Nifty down to 8000. I had expressed same view in last post too. Let's see how things pan out. However one should understand that currently bulls are in control, hence not to go for outright short trade. 

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