Sunday, 22 June 2014

A VIEW ON NIFTY SPOT FOR THE WEEK AHEAD

The markets ended flat for the week, well that’s what the wekly charts would suggest. However, for the investors in the fray, it was almost a nightmarish week where scrips with a Chronbach Beta of more than 2 moved by more than 8-10% whereas Nifty remained stranded in suspended animation. Examples of frontliner stocks are Bharat Forge, Apollo Tyres, Crompton, IRB, ONGC, GAIL. The whole week was spent within 7663 and 7487.55. The two weeks ending on 20th and 13th closed out at 7511.45 and 7542.10 respectively. The weekly range for Nifty going ahead is 7405-7615. Now, 7542-7560-7570-7612-7625-7656 is a good resistance zone and expect Nifty to move towards an all time high if 7642 is scaled and slept over in the week to come.
GOING FORWARD:
Nifty has very good support around 7482-7477 and expect a bounce from these levels. Going forward the band of 7484-7464-7442-7394 is a good cluster of supports. Ideally, Nifty should see a sharp bounce from 7482-7477 levels and the bounce should be aggressive and violent. On an upside weekly range breakout above 7642, it faces the litmus test at 7683.15, frontier 7700 and the daunting 7748.

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