LEVELS FOR NIFTY IN THE COMING WEEK

The Nifty too, hit a new life-time high 6,415.2 in the opening hour of Monday and then lost ground rapidly to end the week 91 points lower.

The index is following the script given as the first option last week. This could be the third part of the correction that began from the 6,342-peak in the index. This wave has the targets of 6,187; 6,046 and then 5,905. There is thus, a slight possibility of the correction ending at these levels. But if the decline continues, the index can head towards the next levels.

There is a strong likelihood of the index moving in the band between 5,950 and 6,400 for a few more weeks before it attempts to move higher. The medium term view will turn negative only on close below 5,920. Subsequent supports are 5,770 and 5,618.

A rebound next week can make the Nifty head higher to 6,262 or 6,323. The inability to move above the first resistance will be the cue for traders to initiate fresh short positions. Downward targets are 6,046, 5,973 and 5,905.