25th May and ahead - Nifty View

We have the May expiry in the coming week and the RBI policy meeting the next week. The action is expected to be in the banking and infra stocks due to this event. Let's look at the charts of the indices.

Nifty Daily Chart
Nifty is trading in a down channel with the upper range at 8570 levels. This is an indication of a medium term downtrend. A break out from this channel will produce the next leg of a rally which could take the index above 9000 levels. A failure to break this channel or sustain a breakout could see the index re-test 8000 levels.

Nifty Fibonacci Levels
The short term Fibonacci levels show that the current upmove could face resistance at the 61.8% retracement levels at 8523 zone. We will have to look at the price action happening in this area as the week unfolds.

The current upmove could see 50 points more before facing it's resistance levels. The short term supports exist at 8380 levels which is an intraday support level. A close below 8380 levels could see the index fall to 8280 levels. On the upside, expect 8570 levels above 8525. A close above 8525 would mean more bullishness for the index.

So the levels for this week are:
Bulls Territory above 8570
Bears Territory below 8380
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