Nifty Weekly Chart: After looking at weekly chart of nifty it seems that nifty has cross its major hurdle of 5590. And 1st time nifty closed above 5590 on weekly basis after May 2011 that is confirming a positive breakout for near term. And this breakout suggesting us next resistance around 5920. After analyzing weekly chart of nifty I noticed a nice double bottom at 5300 during this correction and nifty is still respecting that level and nifty was not able to close below 5290 on weekly basis, during this correction. That is also suggesting momentum is going to shift now. And I found an ‘w’ formation on weekly chart that is suggesting only 2 major res. For this formation that are 5920-6205 respectively. On weekly basis we can use 5440 as a strong support for this bullish view.
A failure below 5440 can confirm some consolidation between range of 5200-5700 and weekly close below 5300 would confirm a decline till 4800 on cards.
Technical Recommendation: after looking at this chart setup personally I would like to go long with a small stop loss of 5440 for target prices of 5910 and 6205 in near term.
After looking at daily chart of nifty a nice bull move seen during previous weeks and a triangle on the way is suggesting that this move may continue for further upside and suggesting 5600 as very important immediate support on daily closing basis a close below 5600 on daily basis would confirm a gap filling that left on 29th June that is around 5558 trader can use this opportunity to accumulate this index for a fresh bull move. And 5440 will be stop loss for all longs. A failure below 5440 with closing may confirm a short term consolidation between range of 5200-5700 but a weekly close below 5270 will kill all bulls. Other wise nifty is looking pretty attractive and personally I would like to go long at every decline till 5440 with a stop loss of 5440 for 5900-6200.
Daily chart:
After looking at daily chart of nifty a nice bull move seen during previous weeks and a triangle on the way is suggesting that this move may continue for further upside and suggesting 5600 as very important immediate support on daily closing basis a close below 5600 on daily basis would confirm a gap filling that left on 29th June that is around 5558 trader can use this opportunity to accumulate this index for a fresh bull move. And 5440 will be stop loss for all longs. A failure below 5440 with closing may confirm a short term consolidation between range of 5200-5700 but a weekly close below 5270 will kill all bulls. Other wise nifty is looking pretty attractive and personally I would like to go long at every decline till 5440 with a stop loss of 5440 for 5900-6200.
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