Nifty forecast 9 to 13 June 2014
Nifty daily chart technical analysis
Nifty spot on last trading session closed at 7583 with gain. On daily chart, nifty price trend and momentum both are super bullish. Prices are still trending upwards in overbought zones, which reflect underlying buying as well as short covering momentum. For next week, nifty outlook is bullish but on cautious note. On downside, 7460 is week average support and below it, 7240 is 1-month average support. On upside expect strong resistances at 7600 and then 7740. All major indicators are bullish but heavily overbought so stay long but with strict stop losses in system. Option traders can play this momentum with in the money call options with stop loss in place.
Nifty weekly chart technical analysis
Nifty spot this week closed with huge gains. This week nifty hit low at 7239 while high was at 7592. Total 350 points rally from lows or 5% gains from lows for nifty and continuation of bull market with another sharp gaining week. Nifty is trading way above its medium to long-term averages but on downside, 7200 and 6800 will remain as intermediate supports while on upside 8100 and 8550 are strong resistances as well as long term targets zones. For investors 7200 is weekly closing basis trailing stop loss for nifty. Below it, expect sharp correction on profit booking by strong hands.Small investors can play this Bull Run by buying far months or long expiry 8000 or 8100 call options on decline with stop loss 7200.