Nifty Futures Technical Analysis outlook, View, Prediction, Target, Resistance and Support levels
Nifty today continued to its down trend along expected lines but the important highlight of today’s fall was that Indian Stock market / Nifty Futures was one of the worst performing markets and although there was good global cues from global markets yet our stock markets were falling in isolation and many traders were attributing to the fall due to the outcome of Karnataka floor test that took place on Saturday but in reality Indian stock markets are now started adjusting for the massive headwinds that the economy has been facing for the past few weeks now, rising crude oil prices and steady depreciation of the INR has not yet been factored in by the markets and now today it was looking like that adjust has started but frankly we are just assigning reasons or trying to justify the move and once again we are saying this clearly that when we take a look at the Nifty chart from an independent perspective we can see that the main trend is down and that buying will not be making money. Let us for e.g. take a basic view on the speed of the fall Nifty made a low on 23rd March at 9951 and then moved to 10930 on 15th May so in terms of no of trading days taken 35 days and now we have broken the 0.382 area in just 4 trading days so the speed volumes of the current fall taking place and open interest data which indicates that there still are massive longs in the system and that most traders are just adding and averaging to their existing longs and getting more and more committed on the wrong side of the main trend. Once again we reiterate that regardless of the events or the news flow the charts are clearly indicating that there is some massive problem that will come out in the public domain and that on account of that news that is already well known to the insiders they are selling Indian equities regardless of other factors so please watch out. The smart money is clearly exiting the Indian markets and looks like they are parking money in bonds which as per our view is heading for 8.5% by the end of the year.
Regular readers of this website are well aware that we had predicted Nifty trend reversal well in advance and guided that there are massive astrological changes taking place around 15th May and post that regardless of the election outcome Nifty will move lower. Nifty today did break the near-term supports that were placed around 10580-10600 spot Nifty levels and moved lower from that area also. Once again keep in mind that near-term supports will not be holding out and will not make much sense the trend as of now has resumed lower and that as per our view, trend analysis traders should not look to buy on dips rather traders should be looking for strategy to sell or exit longs on any rise towards resistance area as we are predicting lower side targets. Nifty Spot has near term support now around 10400-10450 and near term resistance is around the 10650 level.
USDINR as predicted has continued moving in bullish trend as per our analysis of USDINR Charts and our prediction for USDINR we remain of the view that USDINR is heading higher at least towards 72-73 area in the near to medium term. Please keep in mind that this is the minimum target area that we are expecting and we could even see much higher side targets in USDINR over longer term.
Good Trading To You!