Sunday, May 15, 2011

Technical Analysis for Nifty

Nifty Trading strategy along with Trading Levels for the Next week -


One has to follow the Nifty Chart given below for trading in the coming Week.

1. The Support has come from the Trendline joining the recent lows. Break of the Trendline will be bearish. The levels to watch for the break is 5475-5500 for next few days.

2. The Resistance comes from the Fibonacci retrace levels and the Moving Averages. The levels to watch for Resistance is 5635-50 .

3. The Support levels to watch for below 5475 is 5350 and then 5250.

4. The Resistance level above 5650 is at 5750.

5. The Elliott wave analysis suggests a downward bias for the wave 5 of the 1st wave of the 'C' down - CHECK HERE

6. The Options data indicates the deciding narrow range of 5500-5700. 5400 level have a decent buildup of Puts , suggesting some support here.

7. The FII's have been on the Sell side since last two days in the Cash Market during this range trading.

8. Closing above 5750 will indicate a Short term Bullish reversal .

9. Downward bias below 5475 .

10. The Weekly Pivot and the High Volume Node of 5540 (or the last close) may be kept as SAR for the next week . Expect both sides trade in the range, with this SAR.

Watch out near Mid Week , If unable to close above critical levels , may start the downward journey again. Trade with caution.

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