Nifty-Technical Overview For The Week Starting From-23-6-14

 NIFTY CLOSED AT 7511.45.10 ON 20-6-14

Range for the week ended on 20-6-14 was:-7663 -7487.55.

SUPPORT:-7487.55 / 747 / 7409 / 7360 / 7340 / 7263 / 7229 / 7206.70 /
7193.55 / 7118.45.

RESISTANCE :- 7563.50 / 7663 / 7678.50 / 7700.05 / 7855 / 7988 / 8011 /  8052 / 8195 / 8310

Nifty’s move was volatile during the week under review and it hit a high of 7663 and low of 7487.55 before closing the week near the lowest range, furthermore the close was below the previous closing bottom of 7533.55 so the lower top and bottom chain on line chart continues and this indicates that the deep down correction in the nifty is in the offing in coming week.

TECHNICAL OBSERVATION:- Nifty is still making lower top and bottom on the line chart but on the bar chart it had made lower top but has not breached the bottom of 7487.55 yet. The technical parameter is showing negative divergence on daily line chart which indicate that nifty could break the level of 7402 & 7229, since it is also way below its short term DMA of 7592 for 23-6-14 therefore it is expected that it will break the bar chart recent bottom of 7487.55 and this break can trigger deep down correction, going down good support levels for nifty are at 7477 / 7402 / 7340 / 7263 / 7220-7118.from where the nifty could bounce back. The range of 7118-7220 is having a bottom and cluster of moving averages therefore this is a huge support area for nifty but if it starts trading below this level then one has to think otherwise, chances of which are looking very slim at this point of time. To regain strength and upward momentum it has to go above its short term DMA and stay there for a reasonable period of time.

MY VIEW:-
1. Deep down correction seems inevitable.
2. Nifty is expected to break 7487.55level in the coming week.
3. In best case scenario nifty could complete correction in the range of 7340-7402.
4. In worst case scenario nifty could complete correction in the range of 7180-7260.

REMARKS:-Long term up trend still intact but avoid long calls till the clarity on down correction completion is visible. The traders can try short calls a appropriate levels with adequate stop loss or on the safe side can buy PUTS of strike rate 7500 &7400.

NOTE:

1.        PRICE STATED HERE IS OF SPOT MARKET.

         2. RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.
          3. IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL PROTECTION.

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