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NIFTY is ready for 5000?

Nifty weeky long term trend analysis august 2

Potential HNS is appearing on NIFTY spot weekly chart which has neckline support near the areas of 5600. Areas of 5600 are also supported by horizontal support which suggests these levels as very crucial support on daily and weekly closing basis. As per chart provided above if nifty manage to settle below 5590 for 2 daily and 1 weekly basis then down move would extend towards 5327-5080-4945 zones. Stability above 5590 on weekly closing basis remains safe for bulls and it may witness a recovery after retest to June 2013 lows 5566. Indian economy is in worst conditions. RBI in its policy review has cut India's economic growth estimate to 5.5% from 5.7% estimated in May which is underlying bearish factor for domestic markets. Rising crude oil prices in international markets while domestic currency is trading at all-time lows is also a serious concern and would keep inflation on top and it would be a big challenge to maintain current account deficit to a sustainable level. Fundamental picture is also worst for domestic markets.

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