Nifty Daily Charts are attached as Above.Nifty has gained 2.3%,But in Holiday Shortened week Nifty moved up ahead plummeting all the bears once again.FII is pouring money like there is no tomorrow.But in-spite of so gush of money Nifty is just making small moves.
Lets look at in a technical point perceptive:
1. We have formed a Doji on Thursday which is indecision between bulls and bears.
2. Current Channel in which we are trading has a trend line support around 5035 if that is broken we can easily see 4980 levels and below that 4925 levels.
3.Dow has bleeded the past 2 days when we were closed and took Asian markets with it,we have shown out performance in previous 2 weeks.It should be point of concern
Nifty Daily Pivot 5083.7
Daily Resistance:5110.3 5137.1 5163.7
Daily Support:5056.8 5030.2 5003.4
Looking at the Weekly charts we are still above 5 Week EMA which is a bullish sign.
But looking at the way negative divergence seen in RSI and exhaustion seen in other oscillators,I would recommend my readers to be caution.As Correction can come anytime as Nifty PE is around 23 which is pricey 28 is a bubble like situation
I would reccomond to cash out positions on every high coming and be in cash.Buy on dips if 4925-35 range holds.
Nifty Weekly Pivot 5,056
Weekly Resistance:5110.3 5,126.9 5,170.3 5,239.1
Weekly Support: 5,012.1 4,940.8 4,826.2