Nifty futures witnessed a huge sell off at the end of the week on Friday. It made a low of 5493.50 on Friday and closed the week at 5505. It was a lesson for us once again not to attempt at bottom picking and go with the trend. The level of 5739.25 our support no 1 was breached at open and the levels of 5655.15 and 5571 failed to provide support. The level of 5571 was support level no 2 for August series. The intermediate support level below this is at 5394.90. This is the level to watch on the downside now with resistance at 5571.
On the 4 hourly MM level chart for futures the level of 5703 was the pivot and below it the trend was down. Futures went down through two support levels of 5625 and 5547. For Monday the level of 5547 is the pivot on this time frame with resistance at 5625 and support at 5469.
On the hourly chart with awesome for futures we had observed some red on Wednesday at close and the red continued on Friday. Also MFI and RSI were in over bought zone and they have corrected down to 28 and 27 level from the highs of 89 and 73 respectively. We need to watch these both for bottom formation and any positive divergence being formed on them. Also MACD as come down to the neutral level and needs to be watched for further clues for this trend. For Monday use 5000 as pivot with resistance at 5575 and support at 5425 on this time frame.
Spot Nifty Levels for Trading on Monday :
No trade between 5489 and 5526(To avoid whipsaws)
Buy above 5526 sl of 5506
targets 5545-5564(add positions, breakout on the upside),
5583-5602-5621-5640-5659.
Sell below 5489 sl of 5509
targets 5470-5451(add positions,breakout on the downside)
5432-5413-5394-5375-5356.
Happy Trading !!!
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