Nifty Weekly Analysis: 17th Feb, 2014 and Ahead

Nifty - Daily Chart
As indicated by the chart above, 5930-5950 is a strong support for the market and 6110 is a strong short term resistance.If Nifty breaks above 6150, the market becomes strong in the short term with a higher target of 6275.
BUY above 6110, SL: 6090, TGT: 6150
BUY above 6150, SL: 6110, TGT: 6260
SELL below 6040, SL: 6050, TGT: 6020
SELL below 6020, SL: 6030, TGT: 6000


Let's start of this week's analysis with the sector that has supported Nifty the most, CNX IT.
CNX IT - Weekly Chart
On the weekly charts, CNX IT as we had earlier posted had created an inverted hammer in Jan '14 and that has become a top for now. During the course of the last 2 weeks, CNX IT has created an Inside Candle on the weekly charts which shows a lack of clear trend after a major move which was on the bearish side in this case. CNX IT which closed this week at 9855 levels could move upto 10100 levels if it breaks 9925 levels this week. On the bearish side, if it breaks 9525, we can expect 9200 levels in the index. If 9925 is broken, IT Stocks like HCL Tech, TCS would be a good addition to the portfolio for short term traders.

NIFTY - Weekly Chart
On the weekly charts, our view is that the Nifty is in a rising channel since 2012 and since the start of 2013, it is forming a consolidating triangle inside the channel and 5850 is a very strong support of this range, on the upside the resistance is at 6350-6400 levels.If Nifty breaks below 5850 and closes below that level on a weekly basis, we can see a correction down to 5650 levels which is a strong support. If Nifty closes above 6400 on a weekly basis, it opens up higher targets of 7000 levels. Below 5600, medium term targets are 5100/4600. Above 6400 the target is 7000+ level. The LINE CHART below must make the picture clearer.
Nifty Line Chart - Weekly
Read our stock picks for this week here.
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