Weekend Views On Nifty!!!

A good week and a good close on Nifty! We are still doing the same thing; cementing and testing supports with intraday dips and then moving up.

The Weekly Picture:

We seem to have a good weekly close. The RSI above is ready to break its long term trend line. The MACD lines are yet to give a buy on the weekly chart. The MACD histogram is getting shallower. I would have liked to see a bullish divergence on weekly chart to confirm a stronger bullish bias. Weekly support is at 2700 and resistances are at 3160 and 3250.

The Daily Drama:

Nifty seems to be flirting and testing the 50 periods moving average. Both the sides are trying hard to prove their dominance. If on the 17^th we had the bear day, then it was followed by the bull day (a two bar reversal pattern) and yesterday it was followed by a very small bar almost like asking for a timeout, a pause, before taking their respective positions. Ideally one conquering the 50 periods MA, the next target is the 200 MA, in this case the 200 is too much of wishful thinking. The price needs to pause and consolidate so as to enable to bring the 200 MA down enough to take a dig at it. Most of the indicators are hinting OB levels, it’s just the Price is not confirming the weakness as yet. The aggressive stop for longs now stays at 3030/40 and conservative at 2950, the intraday game plan is to buy on dips and trail aggressively. Much is now dependent on the oversee cues everyday.

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