Last week Nifty traded
in a range with bulls in control throughout the week except the last day of the week. Disappointing CPI
and IIP data caused some damage to ongoing positive sentiments. Global markets
too were under pressure.
Let's try to understand how to trade Nifty this week.
Technical
Overview: Last week Nifty made a high of 7916 and low of 7753 to close at 7815. That was a range of 163 points. We got opposite patterns on weekly and daily charts. A
'same open high' candle on Friday on daily chart suggesting bearish sentiments. At the same time nothing seem
to be wrong with weekly chart as it has formed a 'Bullish Harami' pattern
suggesting bulls in control. This setup suggest that though the markets can remain in pressure for one
or two trading sessions, finally they can move higher.
Supports are
near 7777 (becoming weak) and next one is at 7740
Resistance near 7940
is becoming weak now.
Nifty needs to move
beyond the band of 7750 and 7940 to give us a clear direction.
My
View: My view of Nifty being
in range has worked well. Still, Nifty could not come out of that range. The
range may continue for some more time. So far this is buy on dips market. Do not try to go short unless
we get clear indication. In times to come Nifty chart will break out of current
congestion zone. Considering the current
up-trend, lets expect it will break on higher side.
Chart enclosed below to show the levels.
Chart enclosed below to show the levels.
---------------------------------------------------------------------------------------------
Free Webinar – Stock
Market Investment Strategies using Technical Charts
We are organizing a Free Webinar on Stock Market Investment Strategies using Technical Charts. This is a 2 Hours Webinar. You will learn to capture intraday movers, Potential Swing Momentum, Medium term multi-baggers.
If you wish to earn from markets, learning is
inevitable. Don’t avoid learning- nothing is ready-made.
Date: 22 May 2016, Sunday
Time: 11:00am to 1:00pm
No comments:
Post a Comment