Markets may Trade Weak in Truncated Week
The Nifty future may find support at around 7305.49 and 7468.20 on the downside (7305.49 is the 23.60% price extension drawn from low of 2228 to high of 6336 and 7468.20 is the 61.80% price extension drawn from low of 4538 to high of 6349) The Nifty future may find resistance at around 7625 and 7752 on the up-side (7625 is the swing high made during the week ended16-05-2014 and 7752 is the swing low made during the week ended 17-10-2014). What Could You Do? The Nifty future has closed at the lower level of the weekly charts showing weakness for next week. If Nifty future remains below 7625 then immediately on the down side it will find support at 7468. A close above 7625 can take it to higher level of 7752. Selling at higher levels is advisable. We assume a downtrend trading for the next week. Broader trading range: 7305–7752 Immediate trading range: 7468 – 7625
With Intermediate supports placed 7450-7400 levels, holding these levels would be crucial for the index in context of the previous run-up. Only on sustaining these supports, bulls could make attempts to retest the channel resistance area at 7780-7800. Failure to do so, the index could trade sideways down with next intermediate supports placed at 7320. What Could You Do? Havells is currently trading at ₹ 332 levels and has posted a clear consolidation break on the weekly chart. Havells can be accumulated at current levels as the stock is now gearing for up for next leg of up-move initially till 370-375 levels. In addition to this, Shakti Pumps at the current market price of ₹ 169.55 has posted a trend line on the weekly chart and is now poised to move North for an initial target of ₹ 195-200.
What is in Store?
What is in Store?