NSE Nifty technical analysis for Expiry Week Part -I

Nifty and Sensex continued with there consolidation phase, positive takeaway from last week’s movement is that the Sensex is holding above 19,000 and the Nifty continues above 5,825 which gives bullish touch this phase of consolidation. RBI maintained its status quo and disappointed market once again with no tweaking with rates. Namo( Narendra Modi) became 3 time CM of Gujarat and his ambition to Delhi 2014 gave a boost. Next week being an Expiry week with Holiday on Tuesday.

Lets discuss Nifty Trading Strategy for Next week.

 

 Nifty Hourly Chart

Nifty continues to trade below  the important 50 Hour SMA 5883 is the number to be watched for Monday.Till 5883 is not crossed bulls remain on backseat. Till 5825-15 is not broken convincingly bears will remain on backseat.  Basically we are in grinding range,best is to wait for the market to show direction before jumping into the trade. Its almost 16 trading days nifty has been trading range 5823-5965 after breakout on November expiry.

 

 

 

 

 

 

Nifty Gaps

For Nifty traders who follow gap trading there are  6  trade gaps in the range of  5077-5900.

• 5043-5077
• 5238-5309
  
• 5303-5309
• 5399-5415
• 5435-5526
• 5635-5658
• 5666-5651
• 5727-5736
• 5888-5916

So these levels should be noted down carefully by Nifty trader to find further Nifty support and resistance.

 

 

Nifty Daily Chart

As discussed last week  resistance of previous rise ie.5815-25 will become support for any downfall to come in Nifty. RBI disappointing the market nifty corrected took support at 5823 and bounced back smartly as shown in below chart. If one observe the Nifty cycle closely 16-18 trading session are spent in zone of consolidation in range of 5965-5823 after a rise of 200-250 points in Nov last week. So till traders do not see a breakout/breakdown trade in less qty. Do not repent on losing 30-50 points but rejoice getting 150-200 points. Always remember market make 80% of move in 20% of times.

As per trend line analysis Nifty is regularly taking support at rising trendline from low of 4770. Till the trendline at 5766 does not get broken nifty can continue its upward journey and close 2012 on a higher note.

 

 

 

Nifty Daily Chart with Indicators

Negative divergence has shown its effect and Nifty corrected and took support at rising trendline in Blue color. Next week will be crucial looking at this trendline. US fiscal cliff has provided an opportunity  for correction. Till 5825 is not broken market remains buy on dips.

 

 

 

Continue Reading for Weekly Charts and Weekly Levels

 

 

 

Let me go by Disclaimer these are my personal views and trade taken on these observation should be traded with strict Sl

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