24 June 2014

NIFTY FUTURE PREDICTION FOR TUESDAY 24-JUNE-2014

Market falls on first trading day of the week. On monday market witnessed intraday volatility. Reason was higher global crude oil prices and hike in railway freight rates have triggered worries of higher inflation in India. The Sensex, and the Nifty both settled at their lowest level in almost 2-1/2 weeks. The government after trading hours on Friday, 20 June 2014, announced 6.5% hike in railway freight rate and 14.2% increase in railway passenger fare to boost revenue of the railways to meet its annual expenditure. on monday nifty future started at 7538, made a high of 7550 and low of 7464 and closed at 7508, total 86 points was moved by nifty future. Nifty future needs to be corrective and bounces back again or else it breaches the most important support area now between 7510 and 7480 and posts a sharp downswing. The weakness is likely to persist in the market & for tuesday also we are expecting a downward movement for the market.  If the Nifty will fall below the support area it needs to post a large down day breach at the level of 7430, if nifty future doesn’t want to become a bear trap it will have to manage at least the level of 7455-7470. Else, if a recovery will take place then we need nifty future to touch above 7570 for a minimum to have some confidence that a recovery is truly in progress.
Similar technical pattern seen here as well the two weeks old correction could well come to an end or we might be dipping down further and testing 14700-14650 major support area. Even the moving averages are also indicating continuation of the downtrend unless the index takes out 15076 through 15179 supply zone decisively. Last Friday, it did make an effort, albeit unsuccessfully, to clear the above supply zone but it failed as the initial gains had been surrendered later in the day. To expect a sustainable recovery, as of today, we need a market to be above the 15200-mark while the continuation of the current downswing would be signaled when the Bank Nifty takes out the 14950-mark firmly.
RESISTANCE: 7510, 7530, 7550
SUPPORT:  7490, 7470, 7450

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