Bounce back ??

Nifty has formed 'hammer' candle stick formation in weekly chart . It has also taken support at 20 WMA . Nifty is likely to bounce back from current level . If it closes above 8300 then there are greater chances that it will reach 8400-8450-8500 and above . So Once it closes above 8300 buy next month 8400 call option . Finally as per the chart formation Nifty can create new high in coming days .

 

Nifty weekly chart

After reaching the resistance zone Nifty has made  a sharp decline . This decline is expected to continue till 8100. So continue to hold put options / short positions with trailing sl .

LT Weekly chart

LT has closed below 20 WMA which is a bearish sign . It is likely to fall another  25-50 rs .

Tata Sponge

Tata Sponge has started to form lower top lower bottom which shows that bears are dominating .  Even if it bounces it will face selling pressure . If it breaks the trend line support then free fall can be expected .

Nifty is likely to continue uptrend and expected to reach 8100-8150 + . Buy next month 5100 call (1-2 lots) option and hold as long as Nifty is above 7790.

 

Nifty

In the last post I had mentioned the possibility of Nifty reaching 7800-7700 . Second targets is almost achieved . Nifty has breached an important support in the last trading session .Nifty is likely to go down further . 

Gold

Gold is in uptrend from few days . It is likely to reach 28000 in short term . Continue to hold long positions .