NIFTY FUTURE WEEKLY
The week that went by, ended on a negative note and also formed lower top. The weekly candle on the attached chart has a long lower shadow, suggesting that there was buying at lower levels. However, this should not be given much credence, as this was formed by a freak trade that formed low of 5393 in the opening session of 26th April. Moreover, Nifty Future has once again closed outside the channel - suggesting weakness. For the past 4 weeks, we remain in the narrow range of 6000 and 5700. Thus, Nifty Future does not give any clear trend for now.
For the next week, Nifty future has support at 5700 being the mid point on the TP grid for Annual High & Low (indicated daily in the TP Grid). Weakness will accelerate when Nifty Future trades below 5700. If that happens the next major support will be at 5555.
On the higher side, Nifty Future will be once again inside the channel when it trades above 5880. However, it will gather momentum for the upside only when it trades above 5940.
With results season over and Infosys and Reliance both being weak, we have to wait for RBI credit policy to provide the trigger for the market direction.
Have a nice weekend!
Ketan Asher.
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