Nifty future this week closed at 10095 with gain. After last week correction and consolidation we saw sharp buying as well as short covering and nifty future achieved my given September swing target of 10140. This week nifty hit high at 10144 while week low point was 9985 total 160 points narrow range and positive closing for this major index.
Nifty weekly chart set up showing, Prices are now above 5 weeks average of 9982 with bullish continuation pattern. On downside 9727 and then 9263 are 20 and 50 weeks average levels and major support zones as well as target zones if correction continues. Weekly RSI is at 68 with bullish divergence and MACD is at 256 with bearish crossover which might signaling early downside signal of upcoming weakness. On weekly chart nifty future made double top at 10140 level which is bearish sign until it gives breakout above it for next target of 10360.
For future traders, nifty future outlook below 9925 remain bearish on correction chances. On downside 9925 is first target zone if correction triggers but if closes above 10150 then expect shorts and take long view with stop loss for next swing target of 10360. If not then expect correction and bearish trend for targets 9925 and then 9700 levels.
Nifty option traders below 10150 resistance, keep buy and accumulate trading strategy in nifty 10200 put options of this expiry or nifty 10100 put options of next expiry with stop loss for big gains in next week. We already saw nifty 9900 call options rallied from low near 151 rupee to highs of 261 rupees high in 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 257 points.