Nifty...Closing on the weekly basis...What should be the trend next week???
The main index of Indian stock market - CNX Nifty... has ended up its bull trend in the month of March 2015. One of the finest bull trend of Indian stock markets had been in action since September 2013. The all time high of 9119.2 was achieved on 04-03-2015.
The previous all time high of 8996.6 was registered on 30-01-2015. Between both these dates, nifty was retraced considerably and hits low of 8470.5 on 10-02-2015. The retrace was of 6%. From this low point, the index recovered and hit the all time high of 9119.2.
After that, Nifty has started moving southward. The first low was registered on the chart at 8269.15 in third week of March, 2015. Then Nifty retraced upto 8844.8, then again moving down side up to 7997.15. The next wave was at 8499.85 on higher side and then again down move started and still continued.
If we study all these highs and lows in sequence, we can see the lower highs and lower lows in continuation. The last high of 8499.5 was also the lower one from previous high. Now we have to see the new low, whether Nifty is crossing the support level of 8110 on weekly basis an heading towards the last low of 7997.15.
If Nifty takes the support at this level and revert from here, the sequence of making lower lows may comes to an end. After that the index can enter in a fresh up-move or may enters in side ways.
Traders can go long with keeping stop loss of 8110 in mind. However the support level is on weekly basis.
All these studies are on weekly basis and shall be evaluated on weekly basis only.
Happy Trading...Trend is Friend...
- Anand Singh Gaur
- Sunil Kothari