19 Oct: Nifty View

In yesterday's Nifty View, it was written that "... While a short trade may be fruitful below 6025 levels, we will not advise it purely on the basis of Risk : Reward...". Well, a short trade did prove useful in the first half, but as advised, we also did not take it as Risk:Reward did not favour it.It was also given that ".... After two days of straight line declines, we expect to see Nifty give an opportunity for both Long and Short trades tomorrow...". Well, anyone who followed the market, can see the decline in the first half and then the recovery of all the losses in the second half.

You don't need any great Technical Analysis skills to make profits in this market. All that is needed is common sense. Just do all the buying and selling at the supports and resistance levels only, be quick to identify when a support has been broken and becomes a resistance and that's it. Most of the time, you will be on the right side of the market. Take an example of today's levels. Today's resistance points were 6060-6085-6130 etc. Supports were 6030-6000-5985 etc. If you see the chart of Nifty, it broke the first support of 6030 (first time we went long at this level - a Mistake that cost us 20 points!) in morning trades, and went till our third support of 5985, bounced back, and kept hovering between 5985 to 6000 for rest of the morning. It tested the support of 5985 3-4 times, then broke 6000 and went to test 6030, fell sharply again to 6000 (This was the point where we went long for a cool gain of 60+ points!!), and then went to break 6030 to test higher resistance at 6060 and then 6085/6090 as given in the Daily View. It reacted at each and every level.

Now for today, the leading indicators have turned from Oversold status and are giving a Buy signal. But the prices have to confirm the upmove by moving above 6105 first and then conquering 6140/6165. For a positional trade, we would advise to sit out and watch the whole day and then take a Long/ Short trade based on whether Nifty is able to close above 6140/6165 today or not. For intraday traders, watch the action near 6100/6105 levels in morning trades. If Nifty manages to hold 6100, it will move higher to test 6140 where again it will face some selling pressure. On the downside, support now comes at 6045-6030 levels. Till it remains above 6030 now, momentum will remain with the Bulls. Below 6030, it may revisit 6000-5985 zone. A knock on 5985 once again would most likely break it for lower levels.

19 Oct: Nifty spot resistance at 6105-6115-6140-6165-6205. Support at 6060-6045-6030-6000-5985-5960 - www.niftypower.com

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