NIFTY FUTURE WEEKLY
Last week, Nifty Future took support on the trend line (in Red) for the 5th time and bounced. During the week it made a range of 153 points (High 5482 & Low 5329) and closed firm at 5466.
Last week, Nifty Future took support on the trend line (in Red) for the 5th time and bounced. During the week it made a range of 153 points (High 5482 & Low 5329) and closed firm at 5466.
Since it has continued lower top / lower bottom formation, I would not give much credence to the lower shadow on the weekly candle.
As shown on the chart the bounce (from the trend line) is more due to the strong support between 4500 and 5400 levels and market wanting a very strong reason to pierce this region. Though the reasons are developing (Fuel price hike, FII selling etc.) may be they are not strong enough to breach the trend line as yet but it could happen any time as the breakout point is increasing. For the next week the corresponding critical level will be around 5350.
Though the bounce yesterday was sharp, the technical indicators on the weekly chart are not yet in buy mode, hence this bounce too may not last - just like the previous three weeks.
Caution is advised at higher levels.
Have a nice weekend!
Ketan Asher.
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