Nifty Weekly Outlook for 04-08 Feb

RBI delivered what market was expecting cut in Repo and CRR but Nifty has been down from past 5 trading session. As the rate cut had already been factored in by the markets and profit booking followed. Many traders were surprised the way Nifty behaved, market always behave irrationally and its always better to trade as per levels. We are saying from past 2 weeks till 6100 is not broken on closing basis, Trend remains Sell on Rise and Nifty is obliging to it. Government has announced the Budget session dates, Railway Budget on 26 Feb and Annual Budget on 28 Feb which is also expiry day. So rise in volatility should be expected as the event comes near.
Lets discuss Nifty Trading Strategy for Next week.

 Nifty Hourly Chart

Nifty is trading below 50 SMA which lies at 6052.

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