Nifty closed the previous week at 10195, down 32 points. On the weekly chart, Nifty has formed a bearish candle with a long upper shadow, indicating selling pressure at higher levels. It has closed below its one year up-sloping trend line support of 10280 for the second consecutive week, signaling weak sentiment. The index is in a lower top and lower bottom formation, indicating a sustained downtrend. The key support level to watch is 10161. If Nifty breaks below 10140, it could fall to 10050-9950, but a break above 10350 could see a rise to 10430-10480.

1. Technical View (Equity)
Weekly call
Index CMP % up/dn S2 S1 P R1 R2
Nifty 10,195.15 -1.59% 10075 10135 10240 10300 10405
Sensex 33176 -1.51% 32760 32965 33330 33540 33900
Nifty Weekly Chart
Comments:
In previous week Nifty opened with an upward gap and witnessed buying momentum in initial half
however profit booking in Friday's session erased all the earlier gains which led index to close in
negative territory. Nifty closed at 10195 with a loss of 32 points on a weekly basis.
On the weekly chart the index has formed a Bearish candle with a long upper shadow indicating selling
pressure at higher levels. For the second consecutive week index has closed below its one year Up-
sloping Trend line support zone10280 which signals weak sentiments. The index is moving in a Lower
Top and Lower Bottom formation on the daily as well as on weekly chart indicating sustained down
trend. In Friday’s session index has marked a day low around 200 day SMA support zone of 10161 which
remains crucial level to watch for. The chart pattern suggests that if Nifty crosses and sustains above
10350 levels it would witness buying which would lead the index towards 10430-10480 levels. However
if index breaks below 10140 level it would witness selling which would take the index towards 10050-
9950 levels. Nifty is trading below 20 ,50 and 100 day SMA's which are important short term moving
average, indicating negative bias in the short to medium term. Nifty continues to remain in an uptrend
in the medium term, so buying on dips continues to be our preferred strategy. For the week, we expect
Nifty to trade in the range of 10350-10000 with a negative bias.
The weekly strength indicator RSI and momentum oscillator Stochastic have both turned negative and
are below their respective reference lines indicating negative bias.
The trend deciding level for the day is 10240. If NIFTY trades above this level then we may witness a
further rally up to 10300-10405-10465 levels. However, if NIFTY trades below 10240 levels then we may
see some profit booking initiating in the market, which may correct up to 10135-10075-9970 levels
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