NIFTY WEEKLY

NIFTY weekly
As written in the last weeks post the nifty found good supply coming in at 4700 area with investors taking profit off from the table taking cue from the weak monsoon season and its likely impact on the GDP figure. Even the nifty is showing –ve divergence in the weekly charts in MACD and momentum suggesting tiredness. Weekly supports now come in at 4420-4360 and then at 4220 and the entire 4650 to 4750 is a resistance zone.
NIFTY OI
4700 calls have more than 40 lac open positions and that too so early in the series suggesting 4700 to be a big resistance; even 4600 calls have good OI thus suggesting 4600 to be a resistance. ON the puts side 4400 and 4300 have a significant OI suggesting supports at 4400 and then at 4300.
The dow jones index got a boost from the job data which might induce a bounce the important thing to be watched is whether the bounce is with good volumes, however the upbeat mood in the US could be negated by weak monsoon , rising inflation (the real one not WPI) and the chance of rise in bond yields in India
Short term trend is down while the medium term is intact as long as nifty hold the 3800 mark