Nifty futures weekly chart shows futures attaining the projected target of 5632 and closing the strongly above it at 5695. On the weekly the RSI value of 34 has been good support as seen in past. For further momentum RSI needs to cross the resistance of 55 level. MFI has taken support at 20 levels and need to watched carefully. MACD and Awesome are still in negative but very near to the neutral level. In all sustaining above 5632 is the key for this trend and break of it will be the first warning signal.
The daily chart for futures shows price action back in the rising channel some blips below it and testing patience of traders on this time frame. Currently we have hit the first yellow line and closed just above it. Sustaining above it we may hit the red line target as shown in chart. The monthly pivot was at 5555 and we closed above it so currently the trend is up on this time frame. Above the pivot we have resistance at 5775. The high hit on Friday was at 5706.90 and we closed on futures at 5695 a confident close near the highs. With holidays or break of 3 days a change of sentiment can be seen so be cautious at higher levels. The zone of 5750 to 5850 will be critical zone for futures and could be very volatile. The breach of 5555 level of pivot could be a negative for this trend. The intermediate level to watch between these two levels is 5665 which also can be also used as early signal of negativeness.
The 4 hourly chart of futures with MM levels shows the 5625 resistance taken out intraday and we closed above it. The next resistance on this time frame is at 5781 and support at 5469. So breach of 5625 we may see levels of 5547-5469, so be cautious hereafter.
The daily futures chart with awesome has been the most clearest chart to trade on. After clearing the 5501 resistance level with a gap we nearing the second resistance level of 5752 on chart. Please use some reversal techniques for your trades as it is not always expected to hit the levels exactly. Use 5650 as pivot for this time frame with targets at 5750 and supports at 5550 for this time frame.
Intraday traders can look at the levels on spot nifty given below to trade on Tuesday.
Spot Nifty Levels for Trading on Tuesday :
No trade between 5662 and 5699(To avoid whipsaws)
Buy above 5699 sl of 5679
targets 5718-5737(add positions, breakout on the upside),
5756-5775-5794-5813-5832.
Sell below 5662 sl of 5682
targets 5643-5624(add positions,breakout on the downside)
5605-5586-5567-5548-5529.
Happy Trading !!!
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