Nifty daily chart technical analysis
Nifty spot index on last trading session closed at 6526 with huge gains. Strong buying by FII and sharp short covering by trapped traders boosted the market. On daily chart, nifty trend and momentum are strong bullish. Prices trading way above major averages but indicators are highly overbought so correction is due ahead.
For next week, nifty support zones are 6500 and then 6390 while on upside 6635 and then 6760.
For long traders 6500 is trailing stop loss for now. Any daily closing below 6500 means correction signal for target 6390.
Nifty weekly chart technical analysis
Nifty spot index this week closed with huge gains. This week nifty low point was 6212 while high was at 6537. Total 325 points weekly gains or 5%+ gains in this week with long term breakout on weekly and monthly chart.
Nifty weekly chart price trend and momentum both are strong bullish. This was third week of gain for nifty and in this 3 week, we had seen 550 points rally for nifty.
From medium to long-term view, nifty has strong resistances at 6580 and then 6870 while on downside support now shifted at 6280 and then 5980 and all remain important on weekly closing basis. On weekly chart, indicators are bullish but approached overbought zone.
For investors 6280 is trailing stop loss for there investment and 6580 is first target which is almost achieved and then 6870 will be next but correction is due here. For 2014, nifty is approaching my given targets of 6700 and then possibly 7200.