Nifty Spot Weekly Technical_06.09.2021

Weekly basis Spectacular Rally. W to W +600~.
R :- 17400/17500
S:- 17100/17000

Week on Week basis Nifty climbed the new new Historic Highs in uncharted territory & last week was the 5th consecutive Higher High – Higher Bottom formation with a mammoth weekly gain of 618 points or 3.70% supported by not only FII’s strong positive inflows specially after Dovish stance of US Fed but also domestically strong macro economic data say GDP, Auto Sales & Indian Service PMI positive Figures on account of reopening of several establishments and improving demand. The improved pace of vaccination is another cause of positivity.

After June & July 8 weeks range bound consolidation phase in between 15450 to 15950 Nifty Bulls started their trending move since August’21 – 1st week High 16350 – 2nd week High 16550 – 3rd week High 16700 - 4th week High 16722 -- in 5th i.e. partly starting of September High 17300+ .

In last week Nifty gave a madly surging actually from 16700+ to 17300+, not only crossed our all projected weekly hurdles specially 17225/250 but also for 1st time settled the week above 17300 mark, at 17323 making high at 17340.

Coming week is a truncated 4 days week and an exciting week coming ahead.

Traders should focus on key factors like day to day basis :-Global cues – Geopolitical situations, FII’ Fund flows, Coronavirus and Vaccination related updates, Rs against US dollar , India VIX and Macro news -IIP data.

Technically :-

Nifty Trend Deciding Level on the upside : 17350/370
& Trend deciding level on the downside :- 17150/110

On the upside :-

Weekly basis Nifty has formed a strong bullish Engulfing candle which will be further positive if crosses & sustains above 17350/370. Current support at 17250 & 17200. If able to sustain above either 17250/200 and for extreme cases 17150/110 then potentiality to move towards 17420 –17470 // 17500 & even 17540 on the upside.

On the down side :-

Though at current scenario Bulls have a full hope that the rally may touch 17500 <+/-50> subject to hold 17150/110 but very short term basis in coming week traders should maintain some cautiousness at higher ends according to resistances given above. As chartically Nifty is lying already in a overbought stage, some amount of profit booking and consolidation can't be ruled out in the coming week.

If Nifty breaches 17150 & specially 17100 indication of weakness & then bear action to be continued upto 17000 & even 16850 for extreme case. Strong lower ends to be considered as buying opportunity.