Nifty-Technical Overview- For The Week Starting From-30-6-14

 NIFTY CLOSED AT 7508.30 ON 27-6-14

Range for the week ended on 27-6-14 was:-7593.35—7441.60.

SUPPORT:-7487.55 / 7481.30 / 7477 / 7409 / 7360 / 7340 / 7263 /  7206.70 /
7193.55 / 7118.45

RESISTANCE:- 7563.50 / 7593.35 / 7663 / 7678.50 / 7700.05 / 7855 / 7988 / 8011 /  8052 / 8195 / 8310

Nifty moved in a moderate range of 151.75 points during the week and closed  near the mid -point of the range. The range bound movement indicate that a big move on either side can happen in the coming week starting from 30-6-14.

TECHNICAL  VIEW:-

1. It is still making lower top and bottom on the line chart ,to make higher top and bottom it has to cross the recent top of 7580.20 and hold the bottom of 7493.20 on the closing basis.

2. To make higher top & bottom on the bar chart it has to cross the recent top of 7593.35 and hold the bottom 7481.30 or 7441.60.

3. It is still below its short term DMA which is placed at 7552 for 30-6-14(it changes every day),nifty to remain buoyant  has to stay above its short term DMA..

4. The negative divergence is still there indicating that it can break the level of 7402 & 7229.

5. The cluster of important averages are in the range of 7274-7192 for the start of the week i.e.  30-6-14 ,since it is increasing every day so by the end of the coming week the range would be 7330-7250.Nifty has to hold this range ,if it does not then it will be a cause of concern for the intermediate uptrend.

CONCLUSION: Nifty has to fulfill the above stated first 3 condition to negate the divergence and to confirm that the ongoing correction is over ,if it does not then the correction may deepen and then the worst range for the nifty could be the important average range of 7330-7250 during the next week end and to keep the intermediate uptrend intact it has to hold this range, chances of which are looking reasonably good as of now. I feel that nifty possibly would complete the correction by next week and in the best case it could bounce back from the range of 7400-7360 and in the worst case from the range of 7340-7250.

REMARKS: The month of June-14 would be ending on Monday, the month end will provide us with the indicative range for the month of July-14 and possible direction and that will help us to make the trading relatively easy , therefore I suggest  not to trade at all on 30-6-14.

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. 

 Contact me for strategic guidance to enter and exit the trade