NIFTY FUTURE WEEKLY
We saw a second week that ended on a bearish note but remained above 5400 level. During the week we saw a high of 5790 and low of 5444 (range of 346 points). The week closed at 5555 - a key level being referred often in my posts. As expected, we saw a positive close on Friday, mainly because we saw a consistent fall for almost 8 days.
Another important point is that we are now outside the channel on weekly as well as monthly chart which does not augur well for the bulls. However, I would like to caution that extreme bearish is not yet justified, as we have once again made a higher bottom on the weekly chart - though higher top is still not in place to confirm sustained bullishness. Secondly, oscillators on the weekly chart are still not in the sell mode.
On the higher side we have strong resistance at 5700 level and of 200 DMA at 5764 level.
Moreover, it will be only above 5900 level (which was earlier 6000) when we will be out of danger and see strength returning to the market.
As shown on the Weekly chart, the trend line (in Red) has provided support on four occassions earlier. Only when it is broken once again, then we should get ready to see the levels below 5000.
Why spoil our this weekend by worrying about the lower levels which is still some time away?
Have a nice weekend!
Ketan Asher.
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