NIFTY TIPS for 28 Aug. to 1 Sep. week 2017
Nifty future this week closed at 9880 with gain. This was second weekly gain for nifty future after huge sell off on profit booking a well as on healthy medium term correction. Nifty future this week hit low near 9755 and high was 9889 and closed near high with bullish outlook.
Nifty future this week traded into range of almost 140 points closed with gain on value buying as well as some short’s profit booking. Nifty future is in bearish trend as it broken down 9920 support zone with strong price action and with huge volume action which is very significant. On downside 9675 was first bearish target zone and we already saw low of 9710 2 weeks back and hit 9755 low this week. Now prices showing early recovery sign and might breakout above 9920, and enter short term bullish trend for my upside price targets of 10300 and then possibly 10550.
Nifty weekly chart set up showing, prices are now around 5 weeks average of 9870 with early continuation signs. On downside 9625 and then 9170 are 20 and 50 weeks average levels and major support zones as well as target zones for this correction if continues. Weekly RSI is at 64 and now it is flattened out suggesting reversal rally and MACD is near fresh sell signal with bearish divergence. From weekly chart view, correction might test 9240 level on downside. Reversal expected only above 9920 on sustainable basis.
Nifty daily chart set up showing, prices trading above 5 and 50 days averages while just blow 20 days average level and look like taken major support around 50 days average and given strong reversal. On upside 9890 is 20 days average level and strong resistance on daily chart. While on downside 9850 is 5 days average and 9810 is 50 days average support. Daily chart RSI is at 49 with reversal buy signal and suggesting large upside move in upcoming weeks. While MACD still above zero with bottomed out sign for big rally ahead.
For future traders, nifty future outlook above 9920 remain strong bullish and trading strategy will remain buy and accumulate. On downside nifty future will have major support levels for next week at 9850 and below it next support will be around 9810. If nifty future fails to cross 9920 then expect sell off and downside targets of 9675 and then 9300 possibly. But if gives bullish trend breakout above 9920 then expect 10300 to 10550 for sure.
Nifty option traders above 9920 levels, keep buy and accumulate trading strategy in nifty 9800 call options of this expiry or nifty 9900 call options of next expiry with stop loss for big gains in next week. We already saw nifty 9800 call options rallied from low near 61 rupee to highs of 114 rupees high in this week.
Nifty future from long term view, hit 2017 first investment target of 9240 and was heading towards 10400. But last few week big sell off on chart suggesting topped out pattern from medium to long term view and major correction on weekly charts. But now this week move suggesting nifty might resuming uptrend after strong correction of 400+ points from the top.
In last 7 months, only 2 month are with losses while 5 months were closing was positive suggesting overall investor’s bullish view towards this major index. This month red candle showing downside move wiped out last month’s 2/3 of the gains but now look like made low of 9710 and now recovering towards high of 10115.