RETEST OF 6650 BOTTOM LIKELY BELOW 6773
THE WEEK GONE BY
In
last week's report we had reiterated the importance of 6650 support and had
added that 6819, the top made in the previous week, was the immediate
resistance, above which 6900 would be the next target where the upward sloping
trendline adjoining recent tops on the daily chart is placed.
Nifty
resumed its upward journey and touched a high of 6870, but slipped sharply from
there to end the week at 6783, gaining just 4 points compared to previous week's
close.
OUTLOOK
6773,
the low made on Friday, is the immediate support on the way down, a sustained
trading below which can take Nifty back to the 6650 bottom. A breach of 6650,
as we have been mentioning, would break the higher-top higher-bottom formation
on the daily chart and would open up the space for the larger retracement of
the entire 5933-6819 upmove.
On
the way up, the upward sloping trendline adjoining recent tops on the daily
chart presents a resistance around 6930. This would be the immediate target on
the way up.
Traders
are advised to lighten long positions if Nifty stays sustains below 6773.
