NIFTY WEEKLY ANALYSIS
Nifty on 6thJune exhibited a bearish engulfing pattern and continued its slow fall through the course of the week to close below 9600 levels. It has also shown a rounding top formation indicating a further slide in prices over the coming week. The fall in the index this week, even though not rapid, signifies a gradual profit booking at higher levels.
The disappointing start to the monsoons and few global factors led to the fall in Nifty. It can however, regain strength and continue on its uptrend if it manages to close above 9630 level again on a consistent basis. There is no major trigger in the market in the coming week and hence trades are expected to remain choppy. The long term remains bullish but caution is advised to those who want to take new buy positions.
Resistance 2- 9720
Resistance 1- 9630
Support 1- 9560
Support 2 – 9490
Stock to Watch: NSE: UJJIVAN
- According to daily chart UJJIVAN has formed a trend line which is taking resistance at 327. It has bounced back from the support level of 290 with surge in prices backed with high volume in the last two trading sessions of the week.
- Hence the trend may continue if it breaks the trend line at 327, then it may touch 335 and 342 levels. On the downside, a closing below 322 could result in the stock touching 313 and 290.
- One can go long above 327 with the stop loss of 320 and a target of 335 and 342.
Important Support and Resistance levels for next week are as follows.
Resistance (2) – 335
Resistance (1) – 327
Support (1) – 322
Support (2) – 313