Nifty Weekly Overview

Last Week NIFTY gained around 1.4% and ended at 5304.10, also made a low of 5160.90, losing almost 2.70% from the high of 5331.80. It made a Doji Candlestick last week, which indicates a lot of uncertainty prevailing in the markets. But this candlestick at the height of the markets also indicates a trend reversal. The Euro Stats released that the revised Budget Gap of Greece will be more than 14% of its GDP, this year and at the same time the Greek Prime Minister asked for a joint rescue plan from EU and IMF, both these news flows on different days moved the world markets last week. In the coming week, we may see the impact of some decisions to be taken at G-20 Summit regarding Greece and Banking Taxation Policies on the markets, which may be probably a negative impact.

Now, on the Weekly Charts, 5400 is acting as a Strong Resistance for NIFTY, whereas 5200 and further 4700 are acting as Strong Support levels. If a look at RSI (Relative Strength Index) is taken, it is currently at 60.59 (value more than 50, indicates strength), which is giving a positive signal. But at the same time a Negative Divergence is seen between NIFTY and RSI, hence the investors should remain cautious while trading in the markets by following Strict Stop Losses and should avoid making new and heavy investments at this point of time in the markets.