Nifty future this week closed at 9975 with loss. After last week’s gain we saw upside for nifty future and future hit 10188 high but failed to sustain in overbought condition above 10140 support and corrected as expected. This week nifty hit high at 10188 while week low point was 9973 total 215 points range and negative closing on profit booking as well as on negative news flow.
Nifty weekly chart setup showing, Prices are now at 5 weeks average of 9975 with weak corrective pattern. On downside 9750 and then 9290 are 20 and 50 weeks average levels and major support zones as well as target zones if correction continues in medium terms. Weekly RSI is at 62 with bearish divergence and MACD is at 245 with bearish crossover which might signaling early downside signal of upcoming weakness. Nifty given breakout above 10140 but failed to sustain which resulted in correction. Above 9925 trend will remain bullish and this is just corrective move.
For future traders, nifty future outlook above 9925, remain buy on dips with strict stop loss for reversal rally target 10140 and 10360 but if breaks 9925 then that will start of fresh downtrend and fresh short term sell signal for nifty future. Breakdown below 9925 will open 9700 and 9485 levels as bearish target zones. nifty future traders above 9925 keep wait and watch strategy and buy if reversal move happens for targets 10140 and above, if not watch for breakdown and go short with stop loss for big downside in short to medium terms.
Nifty option traders above 9925 support, keep buy and accumulate trading strategy in nifty 9900 call options of this expiry or nifty 10000 call options of next expiry with stop loss for big gains in next week. We already saw nifty 10200 put options rallied from low near 57 rupee to highs of 225 rupees high, into this week.
Nifty future from long term view, hit 2017 first investment target of 9240 and was heading towards 10400. In September we saw positive gains and nifty inching towards 10400 zone. Low of 9887 is remain key level of September series. In last 7 months, only 2 month are with losses while 5 months are positive suggesting overall investor’s bullish view towards this major index. This month positive candle in now of almost 300 points but this week sell off taken gains out of this month’s candle.