Nifty weekly chart shows the RSI divergence earlier(Jan 2013 and May 2013 tops) and weak RSI value against the recent top(July 2013) compared to top in Jan 2013. The support for future at the central band in BB is at 5443. The central band acted as support for Nifty futures which formed a bottom in June 2012 at 4754( All levels as per meta quotes seen in chart).
The daily trend continued its down move and broke the earlier low of 5681 and gates opened for fall which made a low of 5546.05 and closed the day at 5573.35. Catching bottoms can be very dangerous thing to do and the same was proved today with the downfall. Lets look at the monthly levels for this series. Pivot at 5923.25 broken, intermediate support no 1 at 5831.25 broken, level no 1 support at 5739.25 broken and today we hit the intermediate support no 2 at 5655.15(updated on 05.08.2013). So on this time frame now below 5655.15 no bottom catching again. Staying above this level we have resistance at 5739.25.
Nifty futures 4 hourly MM levels had support at 5547 and we have hit it today. 5625 was the pivot which was broken and we had observed it as a strong support. For tomorrow we have 5547 as pivot with resistance at 5625 and support at 5469 on this time frame.
The hourly time frame shows another symmetrical green channel bottom hit today. So staying within this channel will see some recovery. The level to watch on this time frame is 5595 above which we have 5621. Below 5576 the trend is down on this time frame.
Intraday traders can look at the levels on spot nifty given below to trade on Wednesday.
Spot Nifty Levels for Trading on Wednesday :
No trade between 5524 and 5561(To avoid whipsaws)
Buy above 5561 sl of 5541
targets 5570-5589(add positions, breakout on the upside),
5608-5627-5646-5665-5684.
Sell below 5524 sl of 5544
targets 5505-5486(add positions,breakout on the downside)
5467-5448-5429-5410-5391.
Happy Trading !!!
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