Nifty daily chart technical analysis
Nifty spot on last trading session closed at 6089 with flat gain. On daily chart, nifty trend and momentum both are down, so short-term outlooks is bearish for nifty. On chart, 6125 is nifty 3-month average level and below it expect lower bottom cycle for nifty. For next week on downside, nifty has support levels at 6000 and then 5880. For short sellers 6150 is closing basis stop loss on upside. Indicators are with bearish divergences. Expect target of 6000 and then 5880 in next week as profit booking is already started in global markets. Traders for next week can take long positions in nifty 6100 put option of Feb. expiry with strict stop loss.
Nifty weekly chart technical analysis
Nifty spot this week closed with loss. This week nifty hit high at 6188 while low was at 6027. Total 150 points weekly range and closed with loss on sharp profit booking. On chart, 5925 is major support on weekly closing basis, so any weekly closing below it means fresh bear market for this index from medium to long-term perspective. Clear top is visible at 6400 and nifty is making lower bottom, which may eventually give downside breakout. In February series below 5925, nifty may show lower levels up to 5650.
Traders for Feb. series can expect deep downside for nifty future so stay short with strict stop loss or buy in the money put options on any technical bounce back. Expect high volatility and panic moves on global news flow as well as currency volatility.