8 Nov: Nifty View - Caution!

The title of today's Nifty View says it all. Caution! Whenever I see extremely Bullish or Bearish Views floating around, I know this is the time to exercise caution. Right now, I see the Bears missing from the street. All I can hear is "Nifty is gonna make a New High". Is it really that important? What is more important - A New High or a sustainable move above the New High. Have a look at the chart below:



Nifty has done over 200 Points while being in Overbought status. While it can stay in overbought status for a long time, it is definitely not the time to initiate New Longs at this point. Wait for some time for the overbought status to cool off, to initiate new long positions.

Have a closer look at the chart and you will find that it has taken support at the green line and never moved below it once it crossed above it after making a low near our Support Zone of 5935-5940. For those who are already long, a close below these lines can be the first indication for reducing long positions. Trail your stoploss to protect your profits. Book partial and re-enter at the right time.

Positionally, till the time it stays above 6095-6060 levels, this uptrend will be considered to be intact. For intraday traders, watch the levels of 6290/6285 spot for supports on Monday. For anyone going long, 6290 can be the Stop and Reverse level for Intraday. I won't recommend any longs on intraday basis also at this point. However, for those who want to go long, can do so above 6335-6340 levels to participate in the frenzy at all time highs.

8 Nov: Nifty spot resistance at 6335-6355-6370-6395. Support at 6300-6290 (strong)-6270-6255-6220 (strong) - www.niftypower.com

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