For the previous week, Nifty continued to face resistance in 5900-5950 band on the upside.As you can see in fig 1, the upper trend line joining previous highs made by the Nifty gives resistance levels around 5920-5930 for the coming days.


Fig 1

Fig 2

If you see fig 2, lower most graph showing momentum oscillator has turned negative and crossed below 100.Slow stochastics and TRIX (triple moving average crossovers),above the momentum graph in fig 2 are also turning negative.
In Friday’s session, FII’s ( Foreign Institutional Investors ) sold Index futures ( Nifty Futures) worth Rs 243 crore,stock futures worth 47 crore and bought index options worth Rs 577 crore.
All this data indicates caution in the market and downward pressure in the market likely to continue for the coming trading days.
So, Nifty is expected to trend down till 5675-5700 level in the coming days as seen in fig 1 ( pink trend line ). We can short Nifty Futures as long as it sustains below the upper trend line keeping stoploss at 5950 for target of 5700 and lower.(These are nifty spot levels.Kindly adjust Futures prices accordingly )

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Dr Gurvinder Brar

useful post

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