Nifty trading strategy for the first week of 2014

Market last week has been trading in a very narrow range led by reduced institution activity on the back of Christmas and New Year holiday.Action was in Midcaps/Smallcaps as both Index were up by 3.6% and 2.5% respectively. As we approach last week of the calendar year and NAV adjustments are likely to take place.FII flows will be keenly watched to see if the reduction in Federal Reserve’s stimulus has any impact on these investments.

Nifty Hourly Chart

Nifty Hourly charts  are forming ascending triangle, with breakout coming above 6326, Unable to do so we can dip towards 6260 levels in coming 2 days.

 

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