Nifty Weekly Technical Analysis for Week Beginning 11 June

Last Week Analysis Trend Deciding level was 4767 and Nifty made low of 4770 and bounced back with a bang. WoW basis Nifty is up by 4.7% rallying with Global markets. Next Week will be crucial and volatile as we have lot of data points coming from India Macro Perceptive.

1)12 June : IIP data for Jan 2012 (Expected 1.5%);
2) 14 June : Inflation Data (WPI);
3) 15 June : Advance Tax Payments due for Q1FY13

Euro zone agrees to lend Spain up to 100 billion euros. So Spain has become the latest causality from EU debt crises, Market rally last week has already factored this news and any initial excitement can be used to book profits in longs. Buy Rumor Sell News

Nifty Hourly Chart

Nifty Hourly charts has Spiked up quiet violently on Last Friday after filling the gap of 4997 and closed above 5065. Trendline resistance now comes at 5120.

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 Gap:4863-4886

2 Gap :4641-4676

3 Gap:4744-4772

Gaps does provide an excellent opportunity to trade,Like we had on friday with a close of 4997 gap and a fast and furious rally

Nifty Daily Chart

On Daily charts Nifty has closed above 200 DMA.

200 DMA is trend deciding levels for Bulls and Bears. 2 Weeks before we had an disastrous GDP data and next week markets are up 5% so NEVER TRADE ON NEWS,TRADE ON LEVELS.

Next week we will have a Golden Cross or Death Cross when 200 DMA either goes up or below the 50 DMA. Nifty is approaching a crucial resistance level between 5090-5125 levels,So lighten up your longs as genreally such big resistance are not crossed in a single attempt. Pullback till 4925 should be bought into.

Nifty Fibo Chart

61.8% retracement from 4770-5287 comes at 5090 which is also 50 SMA so 5090 should be watched closely, If Nifty open gap up it will come and touch 5090 once in the day.

Nifty Weekly Chart

Bullish Engulfing pattern is formed on Weekly charts and trend line resistance comes at 5115 and coupled with 50 WSMA at 5125

Nifty Monthly Chart

On Monthly Charts 5102 is an important levels and above it Monthly charts will also come in bullish mode. So things are changing fast and next week will be quiet volatile as lot of data points will come.