nifty weekly technical analysis and strategy for 13 to 17 jul 2015
Nifty spot this week closed with flat loss. This week nifty highest levels was 8561 while lowest level was 8315. Total almost 250 points weekly range or 3% volatility and closed with loss. This was first losing week for nifty after last 3 weeks gains.
Nifty on weekly chart closed below major average which is bearish sign but momentum and indicators pattern are still bullish so look like this might be trap for short sellers.
Technically nifty above 8260 spot will remain buy for July series with price target 8580 and above. So follow buy on dips view for target 8580 in next 1 to 3 weeks period. Daily closing below 8250 with price and volume means change of trend for nifty. In that scenario panic sell off might take nifty up to 8050.
For future traders, nifty trading strategy will remain buy and accumulate on corrections with stop loss below 8250 spot for positional swing target 8580.
Option traders can use 8200 call options for accumulation on correction for 50-100% gains till expiry.