Nifty weekly tips 12 to 16 May 2014
Nifty daily chart technical analysis
Nifty spot on last trading session closed at 6858 with huge gains. On daily chart, last session was clear reversal signal and primary trend once again resumed. Nifty had taken support just above its 3-month average and now trading at new high. From short-term view, nifty now has resistance at 6980 and then 7110. These will be upcoming targets if election results signals stable government formation. On downside, 6840 and 6720 are strong support zones for now. Daily chart indicators patterns are bullish but overbought.
Traders above 6840 spot keep long view for next week and keep targets at 6980 and then 7110. On the other hand, to minimize risk buy far months 7000 or 7100 call options on declines.
Nifty weekly chart technical analysis
Nifty spot this week closed with huge gains. This was first week of gains after last 3 weeks correction. This week nifty hit high at 6871 while low was at 6638. Total 250 points range and closed with gains. From medium to long-term view, nifty resumed primary bull trend after correction with strong reversal signals on indicators. On upside 7125 and then 7430 are strong resistances as well as targets on weekly chart. On downside, 6800 and then 6500 are strong medium to long-term support. Nifty spot above 6200 will remain bullish for long terms.
Investors with trailing stop loss below 6800 keep long view and keep targets at 7125 and then 7425 for upcoming weeks. or buy ad accumulate in far months in the money call options on declines.