August 1, 2014

Weekend update

NIFTY closed 2.4% in the negative this week of which 1.5% loss happened today.

In addition, we had a gap down open and inability of markets to recover from the initial bullish bias. Market close near Friday low and weekly low portends some more weakness next week.

On EOD charts, trend remains up and will reverse on close below 7450 spot.

Option writing points to support at 7300 and resistance at 8000 levels.

Weekly charts point to persistent selling at higher levels with support at 7450 spot.

On hourly charts, trend is down with reversal level at 7800... this will come down to 7720 spot.

On 15 min charts, trend is down and will reverse on close above 7720 spot.

On 5 min charts, we had a gap down opening with bias turning bullish. However breakout above 7680 spot failed and markets tanked thereafter.

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