Nifty traded in a narrow range of 100 points between 9709 and 9608 during previous week as it oscillated between positive and negative territory and closed marginally higher.
Holding previous week low 9608 on a closing basis will keep the positive options open for challenging the earmarked target placed around 9750
why around 9750?
on 4 hours charts nifty is moving in a upward moving channel as shown in chart.
also Price wise equality with last rising segment (9088 to 9532 =444 points) measured from recent higher bottom of 9341 projects upsides towards 9785 region.
now comes to rsi analysis
we have seen breakout in rsi also nifty price action is on the verge of breakout as shown in chart
so conclusion
for trading day to day we have support at 9608 (low of doji hammer candle on 4 hrs chart ) so any price fall can be used for buying nifty for the immediate target of 9750 with sl of 9608.
now for medium term question arises from where nifty will fall . so i believe thats a hard question to answer but yes i believe a round of consolidation from here on will make the market healthier by hiving off the overbought conditions developed on weekly charts after four weeks of rally. so what will be medium term base or support .
The ans is 9500 . but why?
Ans-
the 61.8% retracement of the recent up leg (9341-9709) is placed at 9480 levels Since CY17, intermediate corrections have not lasted more than 200 points. Such price wise parity from Friday’s high of 9709 projects support around 9500 region
also Now lets look at the OI table at EOD 9.6.2017
prntscr.com/fhulvu
This table clearly tells us how the range has been shifting upwards---
Now it stands at 9490-9745
This reveals to us that as the June series progressed, market undertone has been bullish.
Holding previous week low 9608 on a closing basis will keep the positive options open for challenging the earmarked target placed around 9750
why around 9750?
also Price wise equality with last rising segment (9088 to 9532 =444 points) measured from recent higher bottom of 9341 projects upsides towards 9785 region.
now comes to rsi analysis
so conclusion
for trading day to day we have support at 9608 (low of doji hammer candle on 4 hrs chart ) so any price fall can be used for buying nifty for the immediate target of 9750 with sl of 9608.
now for medium term question arises from where nifty will fall . so i believe thats a hard question to answer but yes i believe a round of consolidation from here on will make the market healthier by hiving off the overbought conditions developed on weekly charts after four weeks of rally. so what will be medium term base or support .
The ans is 9500 . but why?
Ans-
also Now lets look at the OI table at EOD 9.6.2017
prntscr.com/fhulvu
This table clearly tells us how the range has been shifting upwards---
Now it stands at 9490-9745
This reveals to us that as the June series progressed, market undertone has been bullish.
Comment:
medium term view
Comment:
Friday's price-action had made me believe that the dip from 9709 levels was a simple corrective and that we were back in the upmove by EOD.
However, the sudden Loan-waiver announcement by Maharashtra govt (and its likely chain reaction) might convert the charts into a Complex Corrective as Bank-Nifty in particular may take its own time to factor-in this new development.
Bulls might have to wait for a couple of days---
However, the sudden Loan-waiver announcement by Maharashtra govt (and its likely chain reaction) might convert the charts into a Complex Corrective as Bank-Nifty in particular may take its own time to factor-in this new development.
Bulls might have to wait for a couple of days---
Comment:
9608 to watch if holds one can go long
Comment:
KA