Nifty Hourly Chart
On Hourly chart Nifty took support at the down trending trendline as shown in chart. 5450 levels proved to be a good support and a bounce back materialized from that levels ending the loss making streak of Nifty from past 9 sessions.
Nifty closed the week with a loss of 3.4% shaving off 200 points. 5 EMA and 20 SMA has generated Buy on Hourly charts but longs should be traded be cautious and use the rally to make shorts on higher end till Nifty does not close above 5531 on closing basis.
Nifty Daily chart which broke the important trendline on Thursday EOD on rumors Anil Ambani getting jailed on 2G Scam,but market seldom pay heed to rumuors and on Friday EOD quickly got back into channel but volumes were on lower side as comapred to past 3 days on downfall.
Nifty closed above 5532 which if sustained can slow down the momentum of downfall.
Important Resistance on upside are 50SMA@5631 and 5 EMA High@5632 which if sustained can give some more strenght to upmove.
Higher Time Frame Weekly is still in Sell mode and a Close above 5700 will move Weekly back to neutral mode
RSI has just bounced from Oversold zone and Stoch has not given a buy Yet as it is still below 20
Nifty Weekly charts shows a diamond formation and if 5177 breaks down we should head towards 4900 levels based on trend lines.
Volumes are on lower side. Nifty is SELL on weekly charts and a close above 5700 only will weaken the downfall.
Stochastic has generated a fresh SELL on Weekly charts.
Nifty Trend Deciding Level:5595
Support:5477,5404,5348 and 5258
Nifty Open Interest
As per the OI table PCR @0.71 which is a bearish indication and oversold zone also.
5400 PE having OI 5376050 and 5800 CE having OI of 6924750 giving the range of 5400 -5800 for coming week.
Keep an eye of 5400 if it breaks than we should touch 5177 levels in coming we
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