NIFTY WEEKLY ANALYSIS - 2 SEP 13

Hi Traders,

Weekly Trend   : UP above 5530
Daily Trend       : UP above 5530

The Nifty has closed at 5471 which same as last week.

Weekly Analysis:  

• Nifty has formed hammer candle after 7 down weeks. 

• The hammer candle has been formed from the low of 5128 which is a another support zone.
• Last week also nifty has formed a hammer candle with good volume.
• The last two candle have two long wick or bottom tails with good volume.

This are reason for changing trend from Down to Up ( above 5530).

Daily Analysis:

•   Nifty closed just below the resistance of 5500 - 5530.
•   The 20 MA comes around 5510 and 
•   The Down trend line comes around 5500.
•   There Resistance comes around 5500 - 5530, so this becomes strong zone.

The Trend of the Daily nifty is Down and It will become UP above 5530.

Conclusion:

The daily nifty is at strong resistance of 5500 -5530 zone. The weekly trend of the nifty is UP. As the 2 Sep 13 is start of week. Market maker will use the weekly chart. There is high probability of Nifty taking the resistance zone of 5500-5530.Go long only above 5530.