August 4th week NIFTY VIEW

The weekly chart has ended in a very positive way - biggest gain over the previous five weeks and close near the high of the week. This gives an impression that rally can continue - though it can, I have a different view.

On the daily chart, the lower level of the channel indicates that below 5400 will be bad. Both these figures are not too far from where we are today, if we are to get the contagious effect of the world markets.

In my daily post, I have been putting a level of 5555 as a strong resistance. In today's trading, Nifty Future Sept series did a high of 5544 ....its very near to our levels.

While the objective of my indicating bearish view for past 20 Days or so, is just to caution the readers that at higher levels if one has sold, one can always buy at lower levels.

I am sure the weekly as well as Monthly candle next week will guide us if the market top is in place. In any case, we are near the upper end of the channel on the daily chart.

I would say that monthly candle will look bad, if the close by 31st Aug. is anywhere below 5350, and this will help to confirm my bearish view.

In Friday's trading Nifty Future maintained narrow range of 30 points. In the current series it made a top of 5537 where as in the Sept series it made a top of 5544. Friday is the 64th day from the previous bottom of 4786. Whether the market will reverse? Stay tuned to the market.


All the best