Nifty future this week closed at 10017 with gain. This was first weekly gains for nifty future after last 2 weeks correction and consolidation. This week nifty hit high at 10017 while week low point was 9838 total almost 200 points range and positive closing on bullish trend breakout above 9900.
Nifty weekly chart set up showing, Prices are now above 5 weeks average of 9951 with strong reversal pattern. On downside 9780 and then 9340 are 20 and 50 weeks average levels and major support zones. Weekly RSI is at 61 with bullish divergence and MACD is at 214 with bearish crossover which might signaling early long term recovery signal.
Nifty future for October series opened in bearish zone but recovery rally given breakout above 9900 and now entered into short bullish trend for targets 10100 and then possibly 10390.
For future traders, nifty future outlook above 9900, remain buy on dips and accumulate with strict stop loss for bullish rally target 10100 and 10390. If Breakdown below 9900 then it will resume medium term correction for deep downside up to 9600 and below.
Nifty option traders above 9900 level, 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 9900 call options rallied from low near 81 rupee to highs of 164 rupees in this week.