Nifty closed the week at 5227.30 after making a low at 5216.90 and high of 5267.30 with a net loss of roughly 90 points on weekly basis. The last weeks high was hit twice in this week but could not be sustained further with a weekly high coming at 5348.55 just 15 points higher. This showed exhaustion at the higher price end and hence corrected to close 100 points down for the week. Nifty futures chart above shows the important levels to watch on it. Nifty is perched at the centre line of the channel in chart maintaining above this line will prompt some recovery up to 5300 levels. Breach of this line will take to the critical of 5184 and if that breached then we may expect more correction. Caution is requested in trading the nifty as its movements have not been consistent enough to trade. So keep booking profits as and when they appear. I am not biased or bearish also but keeping positions minimum will be the strategy for the week. Let some clarity develop on this move to take it further. So in general positive on nifty above 5329 , trading range between 5329 and 5184 . Below 5184 one can look to be out of nifty on the long side. Intraday traders can look at the levels on spot nifty given below to trade on Monday.
No trade between 5209 and 5245(To avoid whipsaw)
Buy above 5245 sl of 5225
targets 5263-5281(add positions breakout on the upside)
5299-5317-5335-5353-5371.
Sell below 5209 sl of 5229
targets 5191-5173(add positions breakout on the downside)
5155-5137-5119-5101-5083.
Happy Trading !!!
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