Nifty Update for June 8 - Inder Bhatia

Nifty weekly chart has seen a breakout and close above the major downward-sloping line. The next resistances are 4650 with strong support 4450-4190.

DAILY: Last week Sensex gained 3.3 percent and Nifty gained 3.1 percent respectively. Sensex closed with thirteenth consecutive weekly gain. On the daily chart Nifty has formed a Gravestone Doji, which is bearish pattern at the top, indicating reversal. However, it should break Friday's low for confirmation.

The Rsi is still high and the market is in an overbought zone. On the upside 4650-4750 will act as strong resistance. There is mixed short-term signal which is still bullish on the weekly chart but stretched on the daily chart. For the coming week closing below 4559 could test 4479-4420 zone, while on the lower side closing above 4620 could test 4674-4710.

WEEKLY: The Indian market opened on a higher note tracking positive cues from global markets and closing on a positive note. On the higher side we are seeing selling pressure and Nifty has reached the end point of the band and is ready to break out or breakdown. Anything below 4540 levels we can see sell off and Nifty could test 4509-4460. On the upside 4649-4679 will act as resistance.