Nifty rallied almost 6% from tuesday low of 4786 and being an expiry week rallied 4 trading session out of 5.
For the coming week as we can see from the Daily Chart attached we have 2 resistance visible on chart.
- Middle Bollinger band where we are facing resistance which is placed around 5077
- Trend line Resistance which is placed at 5110 levels.
- RSI is showing negative divergence and still forming lower highs and lower low.
- Market a bit overbought on hourly charts and can correct.
Till what levels can we see a correction or a pull back
As seen from the above daily chart i have drawn fibo retracement from tuesday low of 4786 and Friday’s high 5077 we find that 38.2% 50% and 61.8% are placed at 4967 4932 and 4898 levels .These levels will act as a support
Nifty Support for coming week 4967 4932 and 4898
Nifty Resistance for coming week 5110 5190 and 5210
Weekly Charts
As seen in Weekly Charts above 5 week Exponential Moving Average act like a Laxman Rekha between Bulls and Bears in Short term above 5 WEMA bulls reside and below that bears resides.
Now we are at the Brink of breaking the 5 WEMA which will decide the further trend of the rest of month.we need a weekly closing above 5074 for trend to turn bullish in short term else will remain bearish in immediate short term.
If we see the Option Data PCR stands around 1.33 Levels and we have seen a Very huge Open Interest in 5100 CE .Chart can be seen at http://bramesh-niftyoi.blogspot.com/ which also adds to the fact that 5110 should act as a resistance and only some good monsoon news or some miracle happening in europe can make us cross that.
Buy on Dips near support as mentioned and Keep SL of 4786 on all Longs