NIFTY WEEKLY

Here is a look at the weekly chart of NIFTY.

NIFTY has been playing beautifully within the Fibonacci levels. It has met resistance and at the same time has found support at some of the important Fibonacci levels during its journey in last three years. If we take a look at the upcoming resistance in terms of Fibonacci levels, we will find that 5580-5600 will be an important resistance. On the downside side 5400 to 5380 can be the first support, and 5170 to 5150 thereafter. It is also important to note that recent rise has not been accompanied by strong volumes. There is a negative divergence on the MACD indicator as well (not shown in the chart).

There is no point shorting the index as it is showing no sign of weakness in terms of price, instead it would be sensible to maintain existing long positions if any with an eye on the support levels mentioned earlier.