NIFTY WEEKLY:- 29TH JULY – 2ND AUGUST, 2013
Last week S&P CNX NIFTY began its down move from almost 6100 levels once again and Bears dominating the Bulls, adding weight to the evidence that Nifty is on its way to form a head and shoulder pattern on technical charts. Head and shoulders pattern is not confirmed yet as per technical analysis standards, though.
Nifty is near to a strong support zone of 5825-5850. Therefore, the first decisive move to watch in the coming week is whether the support of 5825-5850 holds in the Indian Stock market and if it holds how aggressive is the reversal from this floor towards the ceiling. This strong support stems from culmination of a lot of technical indicators as support in this zone viz; Fibonacci retracement and arcs, 100 and 200 DMAs . On the other side, if 5830-50 breaks it will open gates for a slide up to 5680, almost 200 points from current levels. Between these two ceiling(5850) and floor (5680) mentioned above, Nifty has supports around 5793, 5775 and 5750-60 levels on the chart for the coming week.
On the long side, if Nifty holds 5825-50 for the week, one can see levels of 6000 in the coming week. 5900-50 is the main barrier for this up move for Nifty in the coming week.
A sideways week of 100-200 points is in offering it seems, if Nifty holds 5825-50 in the coming week, which ends as last week of July and starts as first week of August simultaneously. Hopefully, August brings more trade able intraday set ups!!!