nifty index weekly technical analysis for 31 aug to 4 sep 2015
Nifty spot this week closed with loss. We see high volatility in this week but at last nifty recovered most of the losses and closed near open of the week. This was third losing week for nifty index. In these three weeks period nifty tumbled from high above 8600 to low below 7700. Total 900 points fall in very short span of time. This week nifty high point was near 8100 while low was below 7700. Total 400 points range or almost 6% volatility in week and another weak closing for market.
For next week, nifty support zones are 7822 and then 7600. On upside 8010 and 8160 are strong resistances. On daily chart bar last negative closing givens fresh weakness sign and in next week nifty might test previous low of 7667. But overall strategy should remain buy on decline. We will see strong recovery in medium terms while short term outlook remain stormy.
Banknifty index this week closed with loss. This was third losing week for banknifty and in these 3 weeks period banknifty lost almost 2000 points. This week banknifty hit high around 17446 while low was at 16670. Total 800 points weekly range or 4% volatility and closed with another weak week. On weekly chart banknifty price trend is down but approached oversold area.
For next week, banknifty support zones are 16950 and then 16500. While on upside 17560 and 18000 are strong resistances. Banknifty might test previous low or might record fresh low around 16500 in next week. But traders and investors keep buy and accumulate view on market and buy sharp dips in market with risk based stoploss in place.