Mohit Jhanji Trading in Stock Market Since 2006. Iam working as a Technical Analyst in Wealth Creator. Wealthcreator.co is a research firm. We have Been Serving The Traders Of Indian Stock Market, Commodity Market From Past Seven Years With Tailored Products To Meet The Needs Of The Individual Retail Trader, Brokers,Corporate & High Net Worth Individuals & NRI’s.

Nifty Future Weekly Observation – 23 March 2015

1 min read

niftyweeklyview

 

“Sometimes your best investments are the ones you don’t make.” Donald Trump

As indicated in the previous nifty weekly observation the momentum was shifting in favor of bears and the same has happened. Nifty future has been showing the weakness already in past weeks since the rallies were shallow and declines were happening of higher volume.

We have witnessed three outside bearish reversal bars in march month every week, Even After a gap up opening on any global positive news or local triggers market has not been able to hold the gains or reverse the trend and has declined sharply in favor of the bears. On the broad range from chart above one can clearly see the trading range for nifty future since january 2015 till date.

Nifty future after facing resistance at top end of the range in january last week declined and bounced from the break and bounce level marked on the charts in early February and made life time highs in market 1st week.

Even this breakout from the range was not successful and soon market drifted lower and now closed below the support level & around the lower end of the broader trading range.

The bulls look exhausted now and the trend has turned in favor of bears. The short-term and medium term trend both are showing downward momentum. weekly RSI @ 55.08 is the lowest since march 2014 which is not a good news for the bulls.

On upside the hurdle for the week is at 8735 and 8785 is the major resistance. Once above 8785 nifty closed the bulls shall be in charge again which as of now looks less likely to happen. However on the downside 8540 is last support below which the correction will be sharp and swear. if Nifty is unable to hold 8540 this expiry expect to see 8250-8150 very soon.

 

Disclosure: Holding (Sold Nifty calls @ higher Premium) with trailing stops to protect the gains march series.

Note: We at www.wealthcreator.co trade nifty future & bank nifty positional, short-term on our given recommendations. leading upfront with our own funds. Interested traders can contact Email :mohitjhanji@gmail.com

Mohit Jhanji Trading in Stock Market Since 2006. Iam working as a Technical Analyst in Wealth Creator. Wealthcreator.co is a research firm. We have Been Serving The Traders Of Indian Stock Market, Commodity Market From Past Seven Years With Tailored Products To Meet The Needs Of The Individual Retail Trader, Brokers,Corporate & High Net Worth Individuals & NRI’s.

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4 Replies to “Nifty Future Weekly Observation – 23 March 2015”

  1. Thanks a lot Mohit Jihani sir, for excellent analysis.

    Nifty opened positive today but didn’t sustained at higher levels and reversed back. And now it seems new low below 8555 is possible but let’s see if it hold your important level 8540 as there may be more fall after this breakout point.

  2. Thanks Deepak !
    For readers –

    Nifty future is taking support around 100 DMA 8548 once this level breaks the minor support at 8530 levels is next. If market not bounce here this is going to be a selling climax in this expiry where last standing bull may also get washed out.

    Stay Cautious

  3. Hi
    Great forecast. We are approaching towards your target of 8250.
    How did you arrive at that point.
    What is the technical analysis /price action behind this analysis.
    Please share.
    Thanks.

    1. Thank you for the appreciation. The analysis is already mentioned above. The last update i made in my comments of a selling climax was because a trend continues mostly in the direction especially near expiry since when most people are trapped they do the foolish thing of holding on to the loss or averaging the same at lower points hence big players take advantage of this.

      A bounce will never happen when everyone is expecting it. Nor will the crash or a deep cut. rest please read my next week observation.

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