Nifty Weekly Outlook before RBI, Fed policy

Last week was roller coaster ride for Stock market traders/investor. Market opened up with huge gap up on BJP state election victory and blue channels were saying target of 6700-6800. Correction started on same day and in next 4 trading days nifty corrected 254 points and now many analyst is calling for target of 6000 sub levels. So with a fall of just 250 points how sentiments moved from extreme bullishness to excessive bearishness. In such taxing times only saviour for trader is to have a trading system and trust the same.

Nifty Hourly Chart

Nifty Hourly charts looks like a chart of mid cap low liquid stock with so many gap down, Positive divergences visible on Hourly chart Holding 6141-6170 range pullback till 6287 is on cards.

Nifty Daily Chart

As seen in above chart Nifty is nearing the rising trendline which has given support in last many falls, holding the same we can see a decent bounceback in next week. Volumes have been quiet low in recent fall signalling no major delivery based selling. Also correction will be very healthy for market. Also traders who follow wave analysis do not Nifty took 3 days to move from 6160-6415 but took 5 days to fall back to 6160 signalling a slow fall but fast rise this calls for a bullish case. Also as per time analysis nifty can see a turn date around 17 Dec.

Nifty Gaps

For Nifty traders who follow gap trading there are 9 trade gaps in the range of 5300-6400

5285-5303
5448-5553
5680-5700
5780-5802
6030-5995
6092-6103
6332-6308
6307-6287
6237-6208

Fibonacci technique

Fibonacci fan

Nifty Fibonacci fan are wonderful tool to find the top and bottom in short term.Nifty made the life high of 6417 at resistance of Fibo Fan. I have uploaded the chart in FII data analysis on Monday signalling a correction is underway.Support comes at 6091 as per Fibo fan.

Fibo Retracement also signalling support at 6141.

Nifty Weekly Chart

It was bearish week, with the Nifty was down by 91 and losing 1.5% and formed a Dark Cloud Cover candlestick pattern.Nifty is also nearing its rising weekly trendline,holding the same nifty can bounce back to make a fresh life high.