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Nifty Live Market Watch-Nifty50 Losing Momentum

Nifty50 Losing Momentum; top eight trading strategies for the next 5-10 sessions 

NEW DELHI: The Nifty50 reclaimed its crucial psychological Resistance Level of 7,750 in Monday's trade, but experts feel the index may come under selling pressure near its next resistance level of 7,800.

Benchmark indices closed on a muted note for the week ended April 01, 2016 despite positive global cues, but the good part for traders is that Niifty50 managed to close above its crucial support level of 7,700 on Friday. The Nifty50 managed to bounce back sharply fuelled by a dovish outlook from the US Federal Reserve on the future rate hike trajectory. However, after the initial bounce, Nifty50 lost the Momentum and closed 0.04 per cent lower for the week. ( )

Last week's trading activity suggested that the index is losing momentum, which is not a good sign for the bulls. Analysts advise investors to remain cautious during the coming week and trade with strict stop losses 

The Reserve Bank of India, which is scheduled to hold its first Monetary Policy review of this financial year, will give direction to market in the near term. However, most experts do not see a runaway rally even if RBI slashes rates by 25 bps or 50 bps. 

"The Nifty50 managed to conclude on a favourable note after the sluggishness it suffered in the initial part of the week, but we still would like to adopt a slightly cautious approach," Sameet Chavan, Technical Analyst at Angel Broking said to 

The important reason behind this is not only the 900 points vertical rally which could now lead the Nifty50 to take a breather, but also the convergence of key technical evidence around 7,750 -7,800. "On the weekly chart, we can observe a 'Hanging Man' pattern at the strong resistance of '89 EMA' placed at 7,750. At 7,800, we see a hurdle in the form of the 127 per cent retracement level of the last down move from 7,600.45 to 6,825.80," he said.

Chavan said RBI will announce the monetary policy in the forthcoming week on Tuesday; and traders can keep a note of it and accordingly position themselves for the event. 

This post first appeared on Stock Trading Tips Provider, please read the originial post: here

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Nifty Live Market Watch-Nifty50 Losing Momentum


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