Nifty Weekly Overview

Last Week NIFTY gained almost 1.50% and closed at 5093.50 as compared to the last week’s closing of 5018.05. For the latest week ended, NIFTY made a Bullish Inverted Hammer Pattern on the Weekly Charts, which indicates that if next week NIFTY opens above the real body of the inverted hammer, it means that those who shorted at the opening or closing of the inverted hammer are losing money. The longer the market holds above the inverted hammer’s real body, the more likely these shorts will attempt to cover their positions. This may ignite a rally as a result of covered short positions, which may then inspire the bottom pickers to take long positions.

On Monday, Markets gained astonishingly with the world markets, and made a rally of almost 175 points, hence, the week started with a bang. But as the week commenced, NIFTY started shredding off all its gains made on the first day of the week. Persisting weakness in the European Markets and announcement of Spain’s negative inflation Data, gave the markets another blow and for the week ended NIFTY made a low of 5026.60 points.

On the Weekly Charts too, RSI (Relative Strength Index) is making a negative crossover. Hence traders are suggested to trade cautiously by following Strict Stop Losses and avoid making fresh investments at this point of time.

For the next week, the level of 5285 will act as an important resistance, whereas the level of 4952 will act as an important support for NIFTY.