Weelky Update On 28th may In our last weekly update, we had mentioned that the last upmove in NIFTY from the low of 4789 to fizzle out by tuesday @ (4975 - 5000) level and expected the NIFTY to fall back to 4800 - 4825 by thursday / frinday. Accordingly NIFTY made its weekly high @ 4956 on tuesday and fell down to 4804 on wednesday. It recovered towards the end of the week and closed @ 4920. In the current week, NIFTY has strong resistance @ 4971 - 5040 - 5075 . Support on downside will be visible @ 4825 - 4775 - 4725. WAVECOUNT 1 : 90% PROBABILITY  If the rally in NIFTY, which began from the low of 4804 friday, peaks out on monday @ around 4971 as 4971 is a very strong resistance and it may not rise above 4980. Hence if the NIFTY is unable to rise above 4980 and breaks below 4930, then the NIFTY can have a fall back to around 4800 - 4775 levels in the next 3-5 days. In such a scenario NIFTY will have a sharp 100+ points fall on tuesday. After a panic stricken fall of 150 points from the weekly high, any 3-5 day fall to 4800 - 4775, will be a good buying opportunity with a loose stop loss of around 4725, for higher targets of 5000 - 5050 in the next upmove. WAVE COUNT 2 : 10% PROBABILITY If the NIFTY manages to move above 4980, then it can move upto higher targets of 5075 during the week where it can meet fresh resistance.

TRADING STRATEGY :

Check If NIFTY stays below 4980 on monday & then breaks the low of 4930. In such a scenario, NIFTY can be sold with a stop loss of  monday high or 4980 for a sharp 100 - 150 points fall in the next 2 - 3 days to levels of 4800 - 4775, where NIFTY can be bought for higher targets in the next week.