I WAS OUT OF MARKET FOR A WEEK...........
BUSINESSLINE VIEW ON NIFTY ............
Nifty (5,528.5)
The Nifty hit the intra-week low of 5,477 before closing 25 points lower over the previous week’s close. The concern on the technical front stems from the fact that the index has closed below its key Fibonacci support level at 5,600. Next Fibonacci supports for the index are at 5,450 and 5,246.
As explained last week, there is a convergence of targets around 5,520 level. The index is halting at this level currently.
If this level is breached strongly, the index can next slide to 5,450 or 5,388 level. Short-term resistance for the index will be at 5,610 and 5,650.
Traders can play short only as long as the index trades below the second resistance. The medium-term trend deciding zone is between 5,720 and 5,750.
As far as the long-term trend in the Nifty is concerned, the third wave of the correction from the 6,338 peak is unfolding currently.
Minimum downward target according to this count is 4,984. But if the index manages to hold above 5,300 in this bout of correction, it will keep open the possibility of a move higher to 6,000 again.
BUSINESSLINE VIEW ON NIFTY ............
Nifty (5,528.5)
The Nifty hit the intra-week low of 5,477 before closing 25 points lower over the previous week’s close. The concern on the technical front stems from the fact that the index has closed below its key Fibonacci support level at 5,600. Next Fibonacci supports for the index are at 5,450 and 5,246.
As explained last week, there is a convergence of targets around 5,520 level. The index is halting at this level currently.
If this level is breached strongly, the index can next slide to 5,450 or 5,388 level. Short-term resistance for the index will be at 5,610 and 5,650.
Traders can play short only as long as the index trades below the second resistance. The medium-term trend deciding zone is between 5,720 and 5,750.
As far as the long-term trend in the Nifty is concerned, the third wave of the correction from the 6,338 peak is unfolding currently.
Minimum downward target according to this count is 4,984. But if the index manages to hold above 5,300 in this bout of correction, it will keep open the possibility of a move higher to 6,000 again.
