Nifty ended this week with minor gains. News are not good for the market as the crude oil is trading above 100$ per barrel mark and dollar trading at 60 levels against the Rupee. Also the good employment numbers from US has increased the chances of quick QE3 cut. Overall the news are negative for the market. Lets us see what the technical charts are saying about the future of nifty this week.
Nifty Daily Charts
On the daily charts nifty is forming inverted head and shoulder pattern which is the sign of trend reversal. The neckline is at the levels of 5920. Any close above 5925 will take nifty towards the levels close to 6100. 5800 is a good support for nifty and 5925 is a strong resistance which nifty couldn’t breach this week. Close above 5925 has the targets of 5960/6050 and 6100 . Momentum indicators like MACD and RSI are in buy zone. 5800 and 5750 will the support zone.
Nifty Weekly Charts
In the previous week nifty gave the sign of trend reversal with the formation of bullish engulfing candle on the weekly charts. Things are very positive in the weekly charts as the nifty has maintained its 50 week moving average support. 5750 and 5630 are good support levels which should not be breached.