WEEKLY TURNING POINTS

NIFTY FUTURE WEEKLY

With effect from this week, I will post a weekly chart with a brief write up, hopefully every weekend - Friday/Saturday evening, so that we do not forget the bigger picture.

Trust, this will be helpful to the readers.

Nifty Future Weekly:

Since the mid week, I had drawn a Rising Wedge on the daily chart and when the same was broken the fall was sharp. However, due to better than expected results of SBI, it has seen a rise of almost 10% and has been the major factor in improving the Nifty from the support of 5365.

I have attached a Weekly Chart of Nifty Future and find that similar Rising Wedge formation taking place in the weekly chart too. At lower level the breakout comes at 5225 and the Rising Wedge formation will fail if Nifty Future has to go above 5585 level in the next week.

While looking at the close and the weekly candle possibility of Nifty Future going up can not be ruled out. But we still have strong resistance at 5545. Hence, I believe, we may not be able to cross 5585 and instead move and break the lower level of 5225 in the coming weeks.

In this context, I must draw your attention that Reliance has broken out of the triangle on the down side and hence I the downward bias may continue. However, should Reliance manage to get strength (i.e. stay above 1000), than we may break the 5585 level and the Rising Wedge patter will fail.

Another point worth noting is that Bank Nifty is very close to the previous high of 10800 - it made a high of 10758 today. Generally, the previous level acts as a strong resistance level and we may see Bank stock tiring in the next week.

We have taken support at 5365 during the week. Second time it may break that and we may go towards the second support level of 5225. While it may be little early to press the panic button on the market, it is better to keep these things in perspective so that if the situation arises, we can take adequate precaution.

Have a nice weekend.

Regards,

Ketan Asher.