Nifty Future Weekly Observation 06-April-2015

Nifty future hurdle 8754
Resistance 8800 8870
Support 8500 8435

Nifty future opened the week at 8474.75 and made the high of 8645.55 and closed at the higher end of the range at 8633.10. The week was the shortest as there were only three trading days. After been range bound on Wednesday morning trading session the bulls picked up momentum in second half and nifty future moved out of the hourly trading range for the day and closed higher.

Above is the daily chart of nifty future and one can clearly see the previous higher bottom marked on charts and now market trend is down in short-term and medium term with lower top and lower bottom formation. Nifty future is trading  below its 50 day moving average.

RSI last time it touched around 30 and market bounced to make new life time high’s. After that initial correction Nifty future again moved towards new life time high in march but RSI failed to make new high, the divergence can be seen clearly at chart above marked with blue trend line. The divergence indicated the lack of momentum from bulls despite index making new life time highs.
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Now once again the nifty future bounced from RSI (30) around levels and now the same is trading at 48.95, 60 is the major hurdle area for RSI above which the momentum will shift in favor of the bulls for a fresh up trend.

Now week ahead starting from 06-April-2015  Monday trading session shall have low volatility since all eyes are on RBI policy meet on Tuesday and this shall be trend decider for the index. Till Nifty future holds above 8550 levels this pullback shall get extended to 8754 which is also the 50 day moving average. On downside if there is any negative surprise from RBI expect another round of selling shall begin which will take this nifty future price to 8435-8350 and thereafter at 8200 which is also 200 day moving average.

Disclosure : Holding Nifty future longs opened @ 8556 levels.

Note: We at wealthcreator trade nifty future & bank nifty positional, short-term on our given recommendations. leading upfront with our own funds. Interested traders can contact Email :[email protected]