Nifty Update

Expectations for the week: (Week ending August 14, 2015 -All Nifty levels refer to Nifty Futures) During this week as long as Nifty does not close BELOW the level of 8554 mark, market is not expected to go DOWN. This implies that the point of 8554 is a trend deciding point for the week. On Friday, August 7, 2015, Nifty closed at 8594.1 which is away from this trend deciding point. This suggests that nifty can move up to the first weekly resistance of 8657 mark, on further buying pressure. If this level is not crossed in the early part of the week and Nifty turns from this point or much before this point, then Nifty is expected to move towards the trend deciding point of 8554 mark. A further selling pressure here can take nifty down and can change the immediate trend to negative on the event of nifty closing below 8554 mark. If this happens then supply pressure will multiply and will take nifty to the level of 8466 mark or 8363 mark depending on the force of supply. If Nifty is unable to break this mark of 8466 on its down move, then Nifty is quickly expected to move up towards 8554 mark and then on further buying pressure, it could cross this trend deciding point. On the other hand, if current buying momentum is strong enough to make nifty cross the first weekly resistance of 8657 mark, and if nifty closes above this 8657 mark, then further buying pressure can take nifty up to touch the level of 8745 or 8848 mark based on the demand pressure. Hence the point of 8554 will play a crucial role this week and will go a long way in deciding the forth coming trend of the market. 

For Monday August 10, 2015, the trend deciding point for the day for Nifty emerges at 8531 mark. Again the weekly trend deciding point stands at 8554 mark. On its down move Nifty is expected to take support around 8554-8531 band. If this band is broken due to strong selling pressure, then the next support is expected to emerge at 8465 mark. But this will be possible only if there is a sharp down move. On ascent, the first resistance exists at 8665 mark. A sharp up move can make nifty cross this level and make it reach to 8734 mark. An intermediate resistance stands at 8632 mark. If there is not much demand, then Nifty can reverse from here for downside, instead of 8665 mark. Again, on the other hand, an intermediate support exists at 8567 mark. If there is not much supply, then Nifty can reverse from here for upside, instead of 8531 mark.

Karan Luhana   Equity Expert, R K Broking

Phone: +919510466777 Office: +917940044321 Mobile: +919558889900 Email: karan.luhana@gmail.com Website: www.bmawc.com Address: # 9 Vraj Complex, Opp Ashok nagar, Prernatirth Derasar road, Satellite, Ahmedabad - 380015, Gujarat, India Facebook: www.facebook.com/KRiskmanagement Whatsapp: +917878494848 Blog: www.goal20percent.blogspot.com

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