NIFTY View

Nifty: 20/01/2014 "CNX IT can add Pressure"

The market has entered a phase of consolidation with the 6350 zone being the resistance and 6150 being the support area. Nifty has been consolidating since the past 3 months within the 6000-6350 area as the market eyes the 2014 elections to decide the large term move.

Nifty Daily
A decisive weekly close above 6350 will mean that the index has gained strong momentum for an upside. A close below 6150 will see the index weakening and heading to 5950 and below that to 5700. The strength in NIFTY was due to majore supports from Pharma and IT. Off late, on the weekly charts the IT index seems to be in the early stages of forming a top on the weekly charts as shown below.

CNX IT - Weekly
If the CNX IT index closes below 9600 levels for January, then 10,000 will become a major top and as long as it doesn't break, the market will face pressure coming from IT as well. Rupee is consolidating in the range of 61-62.5.

USD/INR - Daily
A close above 62.2 for the rupee will see it weaken further against $ and race upto 64 levels. On the flip side, breaking below 61 will see it strengthen further down to 58-58.5 levels. The ongoing consolidation of 4 months comes after a meteoric rise which saw it touch 69+ levels. One can initiate a BUY in $ above 62.2 for 64 levels with SL at 61.35.

BUY Nifty above 6350, SL: 6330, TGT: 6390
SELL Nifty below 6230, SL: 6255, TGT: 6180

For SWING trade levels, you can follow the levels we regularly update on our FB page. We take all our trades based on the SWING levels. The market has really become dry for any trades in Cash segment and thus no major positional calls are being given as of now.
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