Monday, July 8, 2013

Technical View of Nifty (09/07/2013)

One more Gap in last session. In past 6 trading sessions, Nifty remained range bound, although with high volatility, but on closing basis, from last six sessions, it is moving clueless. Range is of 100 points upside is capped at 5900 and downside 5800. Trading such markets becomes a challenging job for traders, intraday players where anyways out of the market on day ends. Whether we like or not, momentum is in favor of bear camp, but on closing basis, Nifty gave Hammer kind of candlestick, which means support from lower levels and that too near 5800.Nifty was on a bear trend and closed at 5811 level. So the first resistance for nifty is at 5840-42 level. Next resistance ranges are at 5860-65, 5886-90, 5905-10, 5925-30,5960-65,5980-86,6020-22,6050-53,6590-95 levels. On downside first support is at 5786-82 level. Next supports are at 5760-55,5718-13,5697-92,5660-55,5623-18,5590-85,5569-65,5536-32,5518-14,5497-92,5477-74,5445-41 level. So today a move below 5800 enter a short position with stop loss above 5820, with initial target of 5770. If market moves above 5835 than it can move up 5860 to cover the gap. Net longs can only be open above 5890 levels. Still 5760 seems good support ,To confirm bearish undertone we need close below 5760 levels. Currently Rupee trading at 60.74 versus US Dollar and crude trading above 100 at 102.47 so now bull hopes on upcoming results, RBI and reforms by the UPA government. So approach market with cautious. 


Positional Support for NIFTY 5778 5765 5742 
positional Resistance for NIFTY is 5845 5850 5855 5880 5910 5935 .
Intraday Resistance of NIFTY are 5860 5905 5928 5940
Intraday Support of NIFTY are 5761 5719 5699 5683

Bank Nifty gives small real candles with big spikes indicating high volatility. But, we see Bank Nifty moving further lower, to confirm our view Bank Nifty should stay below 11350. Fresh shorts can be open below 11275 with stop above 11350. We expect Bank Nifty testing 11000 levels.

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