Nifty Weekly Outlook for Week Starting 22 October Part I

Nifty made the top at 5815 in September,Flash crash occurred hurting the sentiments and Nifty made a 100 Points range 5635-5725 and since has been oscillating in that range from past 8 trading sessions.The law of moving average always suggests when get heavily loaded on a single side consolidation is the name of game, So after a huge breakout from 5217 we have a straight line rise till 5800 so nifty needs to capture is breath and consolidation was the name of game. Other reasons which we can attributed are most of traders and mass psychology for 6000 and market is always having the habit to beat the street and moving the line of least resistance.

 Nifty Hourly Chart

Nifty Hourly chart took resistance at 50 Hourly SMA at 5682, Till 5700 is not crossed on hourly basis nifty will be under selling pressure. We will get a gap down opening on monday and if we do not break 5635 another leg up till 5700 is possible.

Nifty Gaps

Gaps formation in Nifty ...

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