It was a roller coaster Ride for the week which was highly volatile and if you were on Right side would have minted money.
At the end of the roller coaster week, the benchmark finally ended at 5581, losing 1.4% over the week, breaking the 3-week rising streak.
[Click on Charts to Enlarge]
On Hourly Chart Nifty forming a triangle with upside limit at 5610 and lower side limit at 5562.
Bulls need to held the level of 5535 as its 61.8 Retracement levels and have Fibo importance.
Below this if closed and sustained 5497 (Swing Low) will be taken out easily.
On Daily Charts there are 2 Possibility:
- Formation of Higher High with the Break of 5740 — Bullish Possibility
- Formation of Lower Low with Break of 5497 — Bearish Possibility.
Nifty took support at 5497 which was 50 SMA and also the Short term Trendline on Weekly charts as shown in above chart
Longs should keep an Strick Sl of 5497 and Shorts a Strict Sl of 5740
Nifty Is Trading Above Monthly Pivot 5500 Denotes Strength On Upside but unable to cross 5610 which denoted bearishness.So both Bulls and Bears are confused.
But as a trader you have your trading levels as biggest assets and need not worry about market trend till you are on Right Side and IF on Wrong side accept your defeat (Take ur loss) and take trades on right side of market.
Nifty Trend Deciding Level:5632
Weekly Resistance:5654,5740 and 5814
Weekly Support:5560,5534,5497 and 5472