Nifty Weekly Update for July 28-Aug 1 - Inder Bhatia

Hourly Chart: The Indian market closed on a red note. The markets reacted to global cues and opened on a weak note, trading in the negative zone for the session. On Friday, I had said that a gap remains unfilled at around 4260, so it is likely that we could fill that gap. We could see some more downsides toward 4260-4200 levels before any upside is seen. Nifty would face resistance around 4459-4500 zone.

Daily Chart: Last week the Nifty closed with the gain of 5.37 percent. Nifty has tested the 4350-4500 levels and has reacted from. On daily chart Nifty has halted the lower-top lower-bottom formation and we are now making a higher top and higher bottom. The higher bottom could be 4240 or 4165 as show. A close below 4307 can take the Nifty to 4192-4076 levels, however if the Nifty is able to close above 4425, we could see 4543-4659.

Weekly: As pointed out, that bears are losing control and Nifty has formed a Hammer pattern, we have subsequently seen a good 5 percent move in the Nifty. The new range for the Nifty is 4500-4000. For coming week there are crucial announcements from the RBI on July 29, so we need to have a close watch on the monetary policy.