NIFTY FUTURE WEEKLY
NIFTY FUTURE:
This week Nifty Future continued its up move to close the week on strong note at 5632. It should be noted that due to a freak trade in Thursday's opening session, Nifty Future is showing weekly high of 5711, but not much trading took place at this level. In view of the same, weekly candle shows upper shadow and the same should be ignored. As such, weekly close is near the high of the weak and hence we should see the continuation of the rally - at least for the next week.
On the attached weekly chart, I have marked no. of weeks from High to High and also Low to Low. As this being self explanatory, I am not repeating it here. I am sure you will agree that we are in the upper range of the time period taken by the market earlier.
Though Nifty Future will find resistance at 5675, I would like to mention that it can go up to 5785 - which is is the upper level of Andrew's Pithcfork shown on the chart, as IIP nos. are good and US markets are also stable. While oscillators do show divergence on the weekly chart, market can continue to remain up. Major signal for change of trend will come only when the Trend Line (shown in Blue) on the weekly chart showing support at 5420 is broken. Nifty Future can get in to panic mode only below 5400 when trend line is decisively broken.
As we all get in to the festive mood, I would like to remind the readers of the old saying - "The higher you go harder you fall". After all it is our responsibility to protect our gains with suitable trailing stop loss. If one goes by the time period of the previous moves, I guess the next two weeks should be crucial for the market.
Have a nice week end !
Ketan Asher.
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