Where is Nifty heading ? Will it find support at 4,440 mark?

In the last weekly report we stated, that if the Nifty trades above 5,020 then it can retest previous high’s and if it slips below 4,820 then there is a strong possibility of the index falling to 4,700 and 4,620.

 On last Monday Nifty, posted intraweek high of 4,910 and 

failed to cross the previous session’s high. Eventually, it violated 4,820 and closed at 4,764. Later, in the week it posted a low of 4,628. On Friday, the index faced resistance near the 38.2% retracement level and finally ended with a loss of 215 points at 4,652. 

On daily charts, the Nifty is moving in a downward sloping channel. The Nifty has crucial support around 4,600; a weekly close below this would indicate the next major support around the 4,440 mark. The momentum oscillators on the weekly and monthly charts indicate that bears are in total control. Pullbacks, if any, are likely to remain short-lived. Next week, the Nifty is likely to face resistance around 4,810-4,860.  Intra week, 4,580 and 4,530 are the support zone.

There are cluster of supports between 4450-4550 levels from where Nifty should bounce back at least till 38.2% retracement level of the entire fall from 5400 as it has done in previous major falls.


50% retracement of entire rally from 2550 to 6350 is placed around 4430. Lower end of falling channel is placed around 4,400 so this should act as a major support for the Index. Also, the projected target of the Descending triangle pattern that we mentioned on 5^th August report comes in the range of around 4,500 to 4,350.