Nifty future closed the week at 8210.55 after making the intraday high of 8247.Volatility continues to be high in the past week after bears fully controlled the whole april series. The first week of may was again in favor of bears.
As shared in our previous weekly report nifty future break down after the channel was broken and trend continued in favor of bears. The march series has been what the most bears had been waiting from so many months. A complete correction with added volume and deeper cuts with no respite for bulls at any levels. A cut of 358 points on spot was witnessed in March FnO Expiry week.
The nifty future broke out of the linear regression channel and closed above the same. The short term moving average has also given the crossover over the medium term moving average. Daily RSI bounced strongly from 45 to now trading at 61.18 with a positive momentum in favor of the bulls.
Nifty Future has had seven consecutive down close days followed by a uptrend and short term trend is definitely down. The major support area is now at 8550. This is 50% retracement level from the previous lows of the trend as same can be seen from chart above.
Nifty future made low 8540 and closed the week at 8582.55 Till if remains below 8630 the short term trend will remain down. The next support for the market is at 8530 below which expect correction up to 8420. The weekly trend for nifty turned negative. The momentum indicator RSI has also turned downwards direction.
Nifty Future November Series closed on strong notes on Friday’s trading session. After opening at 8420.50 it made lows of 8412 Nifty Future moved sharply up side on higher volume to make intraday high of 8512.90, A move of 100 points from lows nifty shut the shop for the day at close 8492.
Nifty Future has been consolidating in a side ways range on low volume since last couple weeks. The range is narrow and rally towards 8420 and higher are been sold where has the correction towards 8390-8350 are been bought up.
Nifty Futures closes the week at 8137.85 after making the high of 8200 for the week. The Friday session however was a positive day. On daily chart the Nifty broken down from a Rising wedge pattern and is making a pullback.