The sharp depreciation in the rupee against the dollar since the beginning of the May has made a pressure on the whole market. The Indian currency has depreciated more than 6% against the US dollar since the 1-May-13.

As Result the Indian benchmark indices manage to end the week with the loss of more than 1.5 %. Traders looked for opportunity to sell at every high or to take profit on every upper level. The pressure is also create due to heavy long liquidation in index future by foreign institutional investors (FII), According to the last week FII derivatives data of 31-May open interest position in index futures was 2,93,350 and now on the week end 7-May index future open interest position have 2,31,898. In equity cash segment FII were net sellers worth -26 Cr. Rs. while domestic institutional investor buyed in equity cash segment worth 82.77 Cr. Rs. during the week. ( See FII-DII Trading Activity )
Depreciation in Rupee-Dollar value also in one major factor to drag the market on to the lower level along with institutional selling figure.

Nifty Technical Chart

The 30 share indices BSE Sensex lost 331 points to end the week's trading at 19429. The 30 share index hit  to a week's high of 19860 and touched the lower level of 19395 during the week. The 50 blue chip stock broader indices, NSE Nifty lost 105 points to end the week's at 5881 level. During the week Nifty touched the high level of 6011 and on the bottom side touched the level of 5869.

Here are the top 5 gainers and losers of the week among Nifty-50 Stocks.

DR.REDDY : Pharma heavyweight was top performer in last week with the gain of more than 5 %  among the nifty 50 stocks.

RELIANCE INFRA : Reliance infra was the second top performer with the gain of  4 % during the week.

LUPIN : One more pharma candidate have succeeded in giving positive returns, Lupin up by more than 2% as compare of last week close.

INFOSYS : IT major heavyweight also include in the list of top 5 gainers of the week. The stock has risen with gain of approx 2 %. Rupee Dollar factor also supporting these type of IT and Pharma company.

TCS : This was one more stock in the IT index which close to week on 1522.6 with the gain of  1.5% and top gainer on the last day of the week.

The top losers among the NSE Nifty-50 stocks are : HDFC (6.48 %), Ambuja Cement (6.34 %), Asian Paints (5.70 %), Bharti Airtel (5.23 %) and Hero Moto Corp. (5.13 %) dropped more than 5 % in a week.

Nifty Charts and Pattern Formation

  • Nifty 5 day daily and 5 week exponential moving average are placed at 5928 and 5955 respectively.
  • The 20 daily and weekly EMA are placed at 5991 and 5875 respectively.
  • Weekly 38.2, 50 and 61.8% Fibonacci Retracement Levels are placed at 5924, 5940 and 5957 respectively.
  • Weekly pivot point support and resistance are 5830-5779-5689 (support) 5972-6062-6113 (resistance) and pivot point are 5920 for next week 10-Jun to 14-Jun.
  • 50 % and 61.8 % Retracement level (5853 / 5764) of the rise from 5477 to 6230.

Nifty Trading Strategies:

Buy Nifty Above 5905 for Target 5920-5945-5970 Stop Loss 5870

Sell Nifty Below 5865 for Target  5840-5805-5780 Stop Loss 5895