Nifty Futures started the day in red, recovered to make a high of 5990( near our intermediate support) and then again went into red to make a low of 5883.10 and closed the week at 5898.85. The monthly pivot for June series is at 6074 and below it the trend is negative. Staying below 5910 will be negative for the trend. Moving above the level of 5992 will have chance of recovery to hit 6074. Above 6074 we can positive on futures for this series. The low for May series had been at 5878.95 on 30.04.2013 and low for this series is at 5878.30 made on 06.06.2013. The level of 5878 is very critical for this series because below this level we have intermediate support at 5804. The current move is well within the falling channel and needs to breakout of this channel for further momentum. Indicators are not showing any reversal signs yet so trading for the channel will be the strategy. For any recovery chances we need to close above the critical level marked on chart and then cross the resistance level in red on chart.
The weekly chart shown above shows the resistance hit at the second deviation at 5221 and we moving down from there with support coming at first deviation at level of 5809, if weakness continues. The indicators RSI and MACD both showing negative divergences on the weekly chart. MFI also hit the falling trendline resistance. For any recovery for the futures MFI has to cross this resistance. Staying above the 60 level will be bullish for the futures.
Trend traders can use the main levels given for the month. Intraday traders can look at the levels on spot nifty given below to trade on Monday.
Spot Nifty Levels for Trading on Monday :
No trade between 5862 and 5900(To avoid whipsaws)
Buy above 5900 sl of 5880
targets 5919-5938(add positions, breakout on the upside),
5957-5976-5995-6014-6033.
Sell below 5862 sl of 5882
targets 5843-5824(add positions,breakout on the downside)
5805-5786-5767-5748-5729.
Happy Trading !!!
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