Nifty View for 04.07.2013

Nifty futures had a gap down opening today with open at 5816.40 which was the high for the day. We made a low of 5755 on the futures and closed the day at 5778.55. The monthly pivot is 5786 and we closed below it.  The intermediate resistance was at 5901 for this series and we have nearly hit it and retraced. For recovery on futures we need to stay above 5786 level.

On the hourly futures MM levels chart we see that a gap down opening below the level of 5820 was definitely short for intraday with targets of 5781 and 5742. Out of which 5871 was achieved and other was missed by 13 points. Also we see that we are in the gap territory with the low at 5755 and close above it.Now we have two gaps to close one the downside and one on the upside, whichever is closed first will decide the trend. So for tomorrow staying above 5781 will be positive and going below 5742 will be negative. 

Now lets look at the hourly chart of futures with awesome indicator on it. Awesome has closed below zero level and continuing the red bars so trend is down here. RSI has moved down sharply with gap down and closed at 44 levels. RSI has supports at 34 and resistance at 55. For strong recovery we need to move above 55 levels for tomorrow. MFI has also retraced strongly below 20 level and we need to see a good reversal on it for the trend to be up. MACD has also turned down reaching the neutral level of zero. In all yesterday's down trend on this level was confirmed with a gap down. Also we opened below the channel which was another negative for the day.

Intraday traders can look at the levels on spot nifty given below to trade on Thursday.

Spot Nifty Levels for Trading on Thursday :

No trade between 5752 and 5790(To avoid whipsaws)

Buy above 5790 sl of 5770

targets 5809-5828(add positions, breakout on the upside),

5847-5866-5885-5904-5923.

Sell below 5752  sl of 5772

targets 5733-5714(add positions,breakout on the downside)

5695-5676-5657-5638-5619.

Happy Trading !!!