- Last week snap shot of Nifty
|
Nifty |
Open |
High |
Low |
Close |
Volume |
FII-Net |
Swing |
Diff |
|
Immediate-Week |
6036 |
6183 |
6030 |
6176 |
318.01 |
1298 |
153 |
140 |
|
Previous-Week |
6111 |
6212 |
5973 |
5995 |
292.42 |
2190 |
239 |
116 |
- Key events (India):-
- Election related news
- FII action and rupee movement
- Economic numbers from US
- Key events (Global-US):-
- Employment numbers and impact on Fed bond tapering.
- Vice President Joe Biden’s trip to Asia and the Air space stand-off between China and Japan.
- ISM data on US Manufacturing and Services.
- Technical assumptions:-
Nifty’s broader range is between 5954-6431 levels now. Nifty has strong support at 6094-27 levels and has strong resistance at 6214-55.
Considering the major trigger expected by markets being the State election result coming on December 8th, Nifty may not break the strong support or resistance levels this week. But Global cues and FII action may play a crucial role if these levels mentioned above need to be broken either way.
Fibonacci levels:-
|
Fibonacci levels |
Nifty Levels |
|
23.60% |
4958 |
|
38.20% |
5222 |
|
50.00% |
5435 |
|
61.80% |
5648 |
|
76.40% |
5912 |
|
100% |
6339 |
|
138.20% |
7030 |
|
161.80% |
7456 |
|
261.80% |
9264 |
|
423.60% |
12190 |
Support and resistance levels for Nifty:-
|
S&R |
No |
Levels |
Strength |
|
Support |
1 |
6143-44 |
2 |
|
Support |
2 |
6094-27 |
5 |
|
Support |
3 |
5948-74 |
3 |
|
Resistance |
1 |
6190 |
1 |
|
Resistance |
2 |
6214-55 |
5 |
|
Resistance |
3 |
6339-47 |
4 |
Broader Range:-
|
Low |
High |
||
|
Broader Range |
|
5954 |
6431 |
Basic trading ideas:-
- Be aware of the news around the globe and watch market charts daily before placing trade.
- For swing trades (One or two days) buy/sell around 20 points from support or resistance and keep a stop 20 points and earning target of 40 points.
- Use Support /Resistance levels to make buying and selling decisions (Trade).
- Buy when Nifty reverses from strong support levels.
- Buy when Nifty breaks a strong resistance and moves above.
- Sell when Nifty is near to a strong resistance levels.
- Sell when Nifty breaks a strong support and moves below.
- Risk: Reward ratio should be minimum 1:2.
- Stop loss should be not more than 2% of the total trading capital.
(This blog is written purely on my understanding of NSE-Nifty 50 stock market and views expressed are purely personal and not meant for any advisory services).
Vijay Shivram Menon 