Last week was indeed an action packed week for the Nifty. On 2nd Jan, Nifty tried to break above the level of 6350 on the upside but the Bears pushed it right down which saw the Nifty close in the red.
On the Daily chart, Friday’s close saw Nifty closing a touch below the Bull trend line as seen in the chart below. Further downside from here could see levels of 6100 – 6115 which could act as support. Break below that and we could touch 5985 – 6000 levels, although I suspect the Bulls would have taken the initiative from the Bears by then.
On the Upside though, level of 6345 to 6360 would act as strong resistance. Couple of closes above this level with good volume should lead Nifty to well past 6400.
Nifty has formed a Bearish Engulfing pattern on the Weekly charts, though it did manage to close above the Weekly Bull trend line. If the coming weeks pan out bearish, we can see Nifty close below the bull trend line with support around the 6000 levels.
Nifty Trading levels for next week are as follows
Buy Above 6247 Tgt 1 – 6323, Tgt 2 – 6434, Tgt 3 – 6510
Sell Below 6247 Tgt 1 – 6136, Tgt 2 – 6060, Tgt 3 – 5950
Note: All levels are for Nifty Spot. Kindly adjust the same for Futures.
Very Important – DO NOT TRADE WITHOUT STOP LOSS. Use sound Money Management with your Trading Plan and do not over leverage vis-a-vis your trading equity.
Have a Profitable Trading week ahead!
To your Boring Success!!!