Nifty Future Hurdle 7835 Resistance 7890 7950 Supports 7745 7705
Technical Update: Nifty future closed the week on a positive note on weekly chart. Nifty future closed Friday’s trading session -34.45 points. Last bar close is negative. Nifty future just managed to close above the short term trend line. There is a possibility of double top formation been formed in nifty future but yet that is not confirmed yet? Fresh up leg will begin once nifty future sustains above 7835 only.
Price: Price action still suggest a buy in dips market as bulls come at every support with buying. No major correction has been seen this past week. Though Nifty achieved the upside targets as suggested in our previous weekly report.
RSI: 14 day daily RSI is @ 61.98. The momentum indicator has turned downside as market facing resistance at higher levels. Also from the chart above, one can clearly see the negative divergence, we have marked the same with arrow’s and circle even with uptrend market the price making higher high’s and momentum indicator is making lower high’s. It’s a sign of been cautious at higher levels.
Trend: Short term trend up with cautious bias, medium term, primary trend are up with strong support at 7550 levels
Volume: The past week rally is been on lower volume as compared to the correction seen previously.
Trading Strategy: Short term traders watch 7790 and 7745 levels. Bias for the week will remain positive once 7790 above market sustains. Bears will be active if nifty future close below 7745 . Intraday & Short term next supports 7705-7650
We are entering to FNO Expiry week for nifty future July series hence buying far out of money nifty options for July series on hope should be strictly avoided.
Trader’s holding long should keep stop loss of 7745. For fresh longs in nifty future, open positions above 7835 with protective stops of 7780 for upside targets of 7890 and 7950. Trader’s going short at higher levels must keep stop loss at 7835 levels only we thou avoid catching tops hence will wait till trend confirm’s any change.