Nifty Weekly Technical Analysis for Week Beginning 23 July

By | July 22, 2012

The Grind down continues, Nifty made a high of 5258 and low of 5169 a range of just 89 points from the whole week. Trading sideways market is the most difficult part as a trader, As every time it moves near the upper or lower band many traders buy or sell in anticipation of breakout and when it do not materialize they are either stopped out or they start taking aggressive stance on market and ultimately loosing money. So let the market decide where it wants to go and once clear trend emerges jump in and make your profit.

Always remember Market is a deep ocean and we as trader want few drops in that ocean in term of profit to be a successful and profitable trader.

Nifty Hourly Chart

Nifty Hourly Charts have taken support at the bottom of channel at 5169 as shown in above chart. Break down of 5169 will lead to 5150 and 5130 levels where strong support is present.Break out come above 5270 only.

Nifty Gaps

Nifty has the only 4 gap remaining above 5000. July has been a month of gap up and down, interestingly nifty has not filled most of these gaps

  1.  5150-5169. Break of 5169 will only provide opportunity to fill the gap.
  2. 5267-5306.Break of 5267 should lead to gap filling till 5306
  3. 5238-5242
  4. 5336-5345.Break of 5306 will lead to this gap filling

 

Nifty Daily Chart

On Daily charts nifty is forming an symmetrical triangle. Height of triangle comes 5348-5095= 253 point, so after months of consolidation we can see the range expanding for nifty in August month.If the symmetrical triangle pattern do not get invalidated.

Nifty broke the triangle pattern with a gap down and formed a low of 5169, consolidated the whole week in 89 points range showing range contraction, Next week its an expiry and volatility or VIX  which has almost died will show signs of life. Breakout comes on a close above 5270 and Breakdown below 5169. As per study done most of gaps will get filled in the coming week.

 

Nifty Fibo Retracement

Nifty Fibonacci Retracements from 4760-5630 are drawn in above chart,Closer look at the same gives that Nifty has been consolidating in the range of 50% retracement at 5199 and 61.8% retracmenet at 5301. So consolidating between 50 and 61.8% retracements shows a decisive move is round the corner.

 

Nifty Weekly Chart

Rising Wedge pattern on Weekly charts,which  became active with breakdown below 5285 and eventually touching 5169. Now next week is crucial in term of do we see a follow up action with a break below 5169. Its two consecutive week Nifty has closed below the pattern breakout below 5285 but follow up action has not been seen. Will expiry week end the dullness at D-Street?

Nifty Monthly Chart

Nifty formed a Bullish engulfing pattern on Monthly charts with a close above 5217 which we had discussion about this number many time. Close above 5217 is bullish for market for rest of year.Monthly Charts of Nifty is giving resistance at 5339 break of same will lead to a move till 5445.

In Nutshell:Daily charts are giving a Choppy sign till 5270 or 5169 is not broken,Weekly charts are signalling consolidation and Monthly chart at resistance of 5339 and support at 5217

 

Nifty Trend Deciding Level:5238

Nifty Resistance:5270,5306 and 5349

Nifty Support:5170,5150,5120 and 5095

 

Let me go by Disclaimer these are my personal views and trade taken on these observation should be traded with strict Sl

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One thought on “Nifty Weekly Technical Analysis for Week Beginning 23 July

  1. mitu

    HiBrahmesh
    Can u elaborate on VIX how to utilize it in trading?

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