In the week gone by the Nifty recovered a part of the losses of the preceding week but the VAH-HVN mentioned at 7220 in the weekly review we had done last Saturday continued to resist and with a high of 7226, the Nifty spot closed at 7210 for the week.
Last week’s post is here – http://vtrender.com/nifty-bn-weekly-view-spot-for-15-feb-19-feb16/ and the views expressed then will continue to have implications in the upcoming week namely 7310 and 12750.
The chart is annotated- To re-emphasize
- Path of least resistance seems to be upwards and towards the higher supply near 7300 levels.
- The region around 7120 is showing dip buyers and we would continue to watch for greens coming here in the intra charts
- The setup is right for a big trending move also and we will watch 7120- 7300 to check for new business
- Below 7120 is an easy drop to roughly 7030 on long liquidation. Below 7030 will fuel a further drop to 6780
- Above 7300 is a 100 point rise to 7390/7410 with a possibility of seeing 7480 also
To summarise the above chart:
- The resistance at 14580 is clear and valid for the upcoming week to
- support is in the region between 14110- 14170
- However if we break that VAL we can get a drop to 13860
- If resistance at 14580 is overcome we can move to 14820.