Dated :- 21.05. 2017                                 NIFTY SPOT : 9427.90

                                                                                                         

Hi readers,

Again the technical's helped us not to be on the wrong side of the trade, they mostly keep the technical analyst on right side of the trade.

It was mentioned in my previous blog that if Nifty goes and stay above 9437 that do not even think of selling as 9437 for us was important level.

Nifty opened the week at 9433 and moved ahead and made a high of 9532 and then came back to close at 9427 thus the readers would have been sitting safe in the volatile week.

We decided to step aside above 9437 and our decision also proved right because the way Nifty and the stocks have fallen from 9532 anybody who have been long would have looked for shelter and some scary days.

Now What :-

First of all let us talk about Nifty Mid cap index (Chart Attached) which has given a gap down breakdown which indicates, that, till the time this gap is not filled on the up side, no point buying from the positional point of view.

The overall view on the mid cap index is that Till the time this gap is not filled in this mid cap index I will not be a positional buyer in Mid Cap stocks. Location wise It is a significant gap Do not take this gap lightly.

Now let us talk about Nifty :-

Nifty after taking resistance at 9532 fell and made a low of 9390 and closed the week at 9427 making a shooting star or Gravestone Doji pattern on weekly charts.

But many of my indicators wanted the close below 9398 to give confirmation of the bearishness in Nifty. This 9398 has now shifted to 9390 for coming week.

Nifty has still managed to close above this level.

Thus the view for the coming week is that now below 9390 closing basis expect more weakness in Nifty and it will then be inclined to move further down to 9258 around levels.

And more importantly till the time Nifty closes above 9390 it may surprise by short covering. Thus for the coming week till Nifty is above 9390 do not try to sell it because till now even by the two trading sessions weakness back to back Nifty has not broken any key important levels.

 In that case Nifty will move in a range between 9360 to 9550.

Also Nifty has not closed below the upper line of the channel who's breakout it has given on daily charts.

Till now co-incidentally 9390 is the level when it will enter within the channel again. (Chart Attached) Thus till the time it does not enter in the channel its breakout is on which may force rebound.

If 9390 is not broken on closing basis then expect choppy moves in Nifty in the coming week because in that case Nifty midcap index will play its part and it will give resistance to Nifty on the upside.

Rather in that case playing the range in Nifty will be a good strategy. ie. selling near the upper level of the range and buying at lower end of the range for small profits will be a good strategy.

Trade Accordingly.

 Note - ALL THE LEVELS ARE OF NIFTY SPOT ALWAYS.

Chart of Mid cap Index :-

Nifty Channel Chart :-