Nifty futures continued the correction by breaching the channel and closed below it. The low made on July expiry is at 5899.05 and the expiry is at 5907.50. Last month's pivot was at 5786 and August series pivot is 5923. So below 5923 we need to watch 5786. The major resistance levels for August series are 6091.50 and 6275.50. The major supports for August series are 5739.25 and 5571. The intermediate resistances for this series above 5923 are 6007 and 6091.50. The intermediate supports for this series below 5923 are 5831.25 and 5739.25. The August series close is at 5945.50 so watch the 5923 level critically as below this we are negative for this series on this time frame.
The 4 hourly chart for futures shows the breach of 5938 in this chart as this is for July series. For the next week we need to stay above the 5938 be positive with resistance at 6016-6094 and support at 5859-5781 on this time frame. As 4/8 level is 50% level so 5938 is critical for any recovery chances.
On the hourly chart we breached the horizontal support line of yesterday and hit the bottom of green channel and also the symmetrical yellow channel. The green channel bottom is critical for recovery breach of it may continue the downtrend. Both yellow and green symmetrical channels are added to catch the symmetry of price actions. Indicators have come down significantly on this time frame and need to be watched for any bounce back possible.
Trend traders need to watch the monthly levels for whole series and compare the last few months results. Intraday traders can use the levels on nifty futures given below to trade on Friday.
Nifty Futures Levels for Trading on Friday :
No trade between 5926 and 5965(To avoid whipsaws)
Buy above 5965 sl of 5945
targets 5984-6003(add positions, breakout on the upside),
6022-6041-6060-6079-6098.
Sell below 5926 sl of 5946
targets 5907-5888(add positions,breakout on the downside)
5869-5850-5831-5812-5793.
Happy Trading !!!
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