Mario Draghi has opened Bazooka for Bulls with its new Bond buying program Outright Monetary Transactions(OMT). S&P hit 4 year high Nasdaq at 12 years high Gold moved to 1740 $ Euro at 1.28. The Financial market love one world in short term which is Liquidity and as a trader never fight the power of Liquidity. It has been proved time and time again from 2009 after financial crises. Look at the performance of Indian Markets they are up 12% Year to Date when we have twin deficit ie. fiscal and current deficit spooling up, rotting macro fundamentals,Coal scam parliament logjam etc. again power of liquidity. Play till music lasts and do not be a die hard bear looking at rotting fundamentals.
Whats in store for next week lets jump and see the Nifty technical outlook
Nifty Hourly Chart
Nifty Hourly charts were moving in a perfect channel till Thursday where they formed multiple bottom at 5217 gave a rally till 5260 where 50 Hourly SMA acted as resistance and market fell in dying hours,Friday was big gap up and now they are moving in perfect hourly channel. Next resistance comes at 5400 and Support on Hourly chart comes at 5330
Gaps formation in Nifty Daily chart pattern, 4 gaps in the range of 5077-5450
- 5238-5309 (Formed this week)
So these levels should be noted down carefully to find further support and resistance.
Nifty Daily Chart
Nifty took a perfect support at trendline from 4770 and started a fresh rally from 5217. Last 2 times we had rally of
- 578 points (5348-4770)
- 416 Points (5448-5032)
so looking at history and calculating as per Ratio theory target for this rally comes at 5516 time frame will be less than 20 trading days.
Nifty has moved above 5342 breaking the long term trendline from 6331 which is good news from bulls as sustaining above it will help them to break the 52 week high of 5648.
Nifty Fibo Retracement
Nifty Fibonacci Retracements from 4770-5630 are drawn in above chart,Close look at the same reveals strong support at 5199 levels which is 50% retracement. Bull markets should hold 50% retracement.We have discussed last week bull market hold 50% and we made low of 5217 and now have started fresh rally.
Nifty Weekly Chart
Nifty was up 1.6% WoW basis, I have discussed 3 week back in weekly analysis Nifty unable to close above 5400 on Weekly basis will invite correction and Nifty made low of 5217.Now as we have crossed 5350 closed above it. Next week we can cross 5400 and rally higher towards the target of 5516.
5366 is 100 Week Weekly moving average close above it is important next week
Nifty Monthly Chart
Close above 5217 is bullish for market for rest of year.Monthly Charts of Nifty is giving resistance at 5368 break of same will lead to a move till 5500.Support on Monthly charts comes at 5214
In Nutshell:Daily charts are giving a Buy signal till 5303 is not broken,Weekly charts are signalling buy with sl 5300 and Monthly chart closed above 5217 signalling September series to be bullish. So trade on time frame you follow ie. Daily,Weekly or Monthly
Nifty Trend Deciding Level:5366
Nifty Resistance:5400,5450 and 5516
Nifty Support:5309,5278 and 5238
I am planning to conduct a training session in Delhi in last week of September interested person can mail me @[email protected] or call at 09985711341 to know further details
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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