Nifty: Bearish bias to continue

Nifty: Bearish bias to continue

Nifty lost less than 0.5 per cent for the week (Infosys fell sharply and contributed more than 90 points for...

niftyNifty lost less than 0.5 per cent for the week (Infosys fell sharply and contributed more than 90 points for Nifty's fall on Friday). Further, Nifty continued to close below 200 DMA suggesting long term bearishness. However, 50 DMA is more than 200 DMA, (Golden Cross is still in force) hence there is scope for Nifty to bounce back as long as the above condition holds. Further, technically there is a strong support around 5325 which can be expected to be honoured. However, as quarter/annual results season has commenced, market movement will be influenced by the scrip wise results. Hence if Nifty closes continuously below 5500, there is scope for further fall. If Nifty closes below last week's low, further fall too can be expected. Current week is a truncated one with a long weekend. (Friday Holiday). Hence any gains in the beginning of the week too might get erased by close of the week. While Nifty is bearish for the month it has strong resistance around 5610 and 5720 while it has supports around 5450 and strong support around 5325. Technically, as Nifty is below the all important opening level of the month, it is bearish and would turn bullish for the month/financial year only on a weekly close above the open. Better to follow scrip specific approach for investment which qualify for "Value Investing ". Short term traders need to be ever vigilant tracking short term movements and investors with medium and long term outlook can invest in quality stocks on SIP basis. However, in case of Nifty trading below 5500, investment also may be deferred as further fall is quite possible. For the coming week, Nifty spot is expected to face resistance at 5600, 5675, 5750 and find support at 5455, 5370, 530. Nifty, presently in Bearish zone would get out of the same on a close above 5610. Advice for Traders Nifty is Bearish and would get into Bullishness only on a close above 5610. Short positions can be initiated on rise with a stop loss above 5610 (on close basis).
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