18 Oct: Nifty View

First of all, My apologies to all blog readers for the inconsistency in updating the Nifty View on a Daily Basis. Have been very busy lately. However, going forward, I will make it a point to update the blog on a regular basis.

In the past few days, nifty gave some very volatile moves, first giving a false breakout above 6220 Spot and then reaching nearly the all time highs. Since then, it has fallen in a straight line and given a breakdown on the lower side. Will it be a genuine one or a false breakdown again?? That is the big question.

The very short term indicators are reaching oversold state in the Nifty. Options data indicates support near 6000 levels. Beyond that also, good support exists for Nifty spot at 5980-5960-5930 levels. Hence, shorting for a positional trade looks risky at this stage. This does not mean that one should go and create Longs here. If you are already not in a short position, either stay aside or try your hand in Long trades for intraday only at supports.6030-6010 spot can be the stoploss for longs. For a positional long trade, we have to wait and let Nifty show some strength.

For the day, watch the action near 6035-6025 levels. One can try an aggressive long trade near these levels if Nifty opens down and slides further till here. Be quick to book profits near the resistances. On the upside, Nifty will face resistance near 6085-6090. Breakout above 6085-6090, it will again target 6120-6130 levels where again some selling can be seen. While a short trade may be fruitful below 6025 levels, we will not advise it purely on the basis of Risk : Reward. Shorts should be taken only at higher levels near resistance points. After two days of straight line declines, we expect to see Nifty give an opportunity for both Long and Short trades tomorrow. Let's see what is has in Store for us!

18 Oct: Nifty spot resistance at 6060-6085-6130-6150-6180. Support at 6030-6000-5985-5960-5930-5910 - www.niftypower.com

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