Saturday, May 7, 2016

Bulls ready to take charge? – Nifty View 9-13 May

Nifty is trading in red since last 3 weeks. It has been maintaining the range which I have been talking about. However Nifty is now trading near lower end of this range. Global scenario is not supportive to bulls so far.

It would be interesting to see whether bulls can take charge from this level.

Technical Overview: Last week Nifty made a high of 7890 and low of 7678 to close at 7733. That was a range of 212 points. Red Spinning Top candles formation on weekly chart since last 3 weeks suggesting neutral to bearish view. However now Nifty has reached a price which is a ‘make it or break it’ price, as Nifty has a support near 7663. If Nifty holds this level we can expect Nifty to continue its ongoing higher top higher bottom cycle. 

New resistance is formed near 7800 then at 7940. Supports are at 7663. If Nifty breaks 7663, there is possibility of it moving down to next critical level of 7570. Bearish territory starts, below 7570-7526   

My View: We know that medium term trend is up and short term trend is down. However Nifty is now trading near support. I expect Nifty to hold and rebound from this level. First hurdle is near 7800. If bulls can show some strength near these levels, we can consider that the correction is over and Nifty resumes its uptrend.    

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Check the levels marked on chart below

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