Nifty futures had a recovery after a low of 5613.90 and closed the week at 5661.85. This series from a high of 6119 we have made a low of 5613.90 and had a swing of nearly 500 points. We have closed below our second monthly support of 5697. So for any recovery we need to move above this level. Above 5697 we have intermediate resistance of 5803. Staying below 5697 we are open to 5508. For Monday one can be positive if we sustain above 5697 till expiry. Prices are within the falling channel and near its bottom. RSI is showing slight divergence but needs to move and sustain above 34 and go to next resistance of 55. MFI is flat so selling pressure is reducing and is near its old lows. MACD has to move above the neutral level of zero to provide strength for the recovery if it materialises.
Weekly chart above does not give the confidence of recovery yet. We are below the falling trend line connecting the tops of 5 weekly bars. Bollinger bands first deviation level is at 5814 and for recovery we need to cross this on the weekly charts. The support on weekly Bollinger bands is at 5405. Trend players can be positive above 5697 with suitable stop loss. Intraday traders can look at the levels on spot nifty given below to trade on Monday.
Spot Nifty Levels for Trading on Friday :
No trade between 5649 and 5687(To avoid whipsaws)
Buy above 5687 sl of 5667
targets 5706-5725(add positions, breakout on the upside),
5744-5763-5782-5801-5820.
Sell below 5649 sl of 5669
targets 5630-5611(add positions,breakout on the downside)
5592-5573-5554-5535-5516.
Happy Trading !!!
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