Nifty Weekly Technical Analysis for Week Beginning 27 May

Nifty halted its down move, made a low of 4803 but outperformed BRIC as we are up 0.6% WoW basis. Last week as we discussed below 4898 trend remain bearish and Nifty made a low of 4803 high of 4934.Click Here to Read the Previous Week Analysis

INR made a life time low of 56.3 before closing 55.41, on news that we can see Diesel Hike and Cooking Gas price gas hike which will help in getting its finance in order. Next Week is Expiry do except a volatile week ahead. Till 4960 is not crossed Bears are having upperhand and they will want to push nifty down to cover there shorts at lower rates,Bulls if able to cross above 4960 will lead to huge short covering coupled with value buying.

Nifty Hourly Chart

Trading comfortably above 50 HSMA @4880. Hourly charts are approaching overbought conditions and pullback till 50HSMA should be bought into.Below 4880 low of 4805 can be retested again.

Nifty Gaps

Nifty has the following gaps so any close below 5000 will lead to gap filling so keep a close eye on the gap levels mentioned below 1 got filled in current week and still 2 are pending.

1 Gap :4641-4676

2 Gap:4744-4772

3 Gap:4879-4905 — Filled

4 Gap:4947-4991 — Filled

Nifty Daily Chart

Still trading below the long term trendline and we had the formation of double top with nifty unable to cross above 4834. Double top are bearish in nature and confirmation will come with close below 4880.

Bulls are able to close Nifty marginally above the down trending channel, Follow up action is needed with a trade above 4934 and 4960 to nullify the downward channel and double top formation also.

Nifty Fibo Chart

4667 and 4952 are the levels marked in circle and needs to be watched closely before any further trending upmove and down move in Nifty. Another confirmation for BUlls will come with a close above 4924 which is 78.6% retracement of current downfall from 4957 to 4803.Close above 4824 will end the current downmove and an early indication 4960 will be conquered.

Nifty Weekly Chart

Formation of Hammer on Weekly charts signalling the current down move is either ended or paused. Next week will be trend deciding week,Break of 4788 will make us revisit of 4720 and 4641 which will lead to eventual gap filling of remaining two gaps also.

Support becoming Resistance Nifty flag and Pole pattern upper trendline now becoming resistance.

Nifty Monthly Chart

Next week will be weekly and Monthly closing for Nifty for May. Close below 4937 will make Monthly structure of market week, Close above 5118 will make the Monthly time frame of Nifty strong.