16 Sep: Nifty View

Nifty continues to rise in Overbought conditions. It was given in Yesterday's View that "For the day, first resistance comes at 5810-5815 spot levels above which Nifty may again try to hit 5835-5855 levels where it will again face resistance..... 15 Sep - Nifty spot resistance at 5810-5835-5845-5870. Support at 5785-5775-5750-5715 - www.niftypower.com".

Nifty opened at our resistance levels of 5810-5815, and immediately took off to trade in the zone of 5835-5855. Once past that, it stopped right at our last resistance point of 5870. We sold near our resistance point of 5860-5870 and booked at 5840.

From the action of the last couple of days, it can be observed that the major moves (Upsides) in Nifty are happening in the very first hour. Thereafter, it cools down and then recovers a bit to close somewhere in between. The effect of this type of movement is that the Weak Shorts & the Weak Bulls, who are looking to square off/ Buy at the slightest of dips are not able to do so, as Nifty remains above the levels of previous day's closing. The Bulls are trying to force them into submission so that they Buy at higher levels. Once these shorts also start to cover, we might see another leg up and then only will the correction begin.



For the day, the immediate resistance comes near today's high of 5870-5875 levels, above which, Nifty may target 5900 levels. On the lower side, Support exists at 5844-5834 levels, break of which will lead to 5815 levels. Overall, Nifty should remain Bullish as long as it trades above 5845 spot. Below 5845, we can see some Profit Booking.

Sep 16 - Nifty spot resistance at 5875-5900-5915-5940. Supports at 5855-5845-5835-5815-5785 - http://www.niftypower.com/

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15 Sep: Nifty Views

Nifty spot, it was written yesterday real resistance will come only at 5820-5835 levels. Nifty made exact high near 5835 levels and reversed sharply from there. We sold at the exact resistance point and got easy points in Day Trading.

For today, nothing much has changed from yesterday. We have had some bit of cooling down and there might be some more today.




The Options OI data indicate Call unwinding at 5700, 5800 levels and small Put Addition at 5700 and 5800 levels. Not much Call writing is seen which is understandable as Call writers have faced heavy losses this month. Hence, the upside is still open for the Nifty while on the downside supports exists.

For the day, first resistance comes at 5810-5815 spot levels above which Nifty may again try to hit 5835-5855 levels where it will again face resistance. On the downside, supports exits at 5785-5775 levels, below which, next immediate support will come at 5760-5750 levels. Positional shorts are not advised yet. Shorting can be done only on intraday basis, but be quick to book gains.

15 Sep - Nifty spot resistance at 5810-5835-5845-5870. Support at 5785-5775-5750-5715 - www.niftypower.com

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Sep 14: When the Last Bear turns a Bull... Sell!!

The movement of Nifty in the Past few days could has left most of the traders dumbfounded. There we were, on the verge of breakdown near 5360 last week. But the force of this upmove has left everyone dumbfounded.

Technicals are highly in favour of the upmove continuing. This might be the breakout that everyone was looking and waiting for months. A look at the chart below will tell us that the price is currently moving above all major averages and supports. Buyers will now come in at all dips near the support areas.




However, the leading indicators are in the overbought status. We might see some rangebound activity today after the heady upmove from yesterday. A time correction will correct the OverBought status of Nifty.

We would still prefer to wait and watch this upmove of Nifty. When everyone around has become so Bullish on the Nifty, it Scares me. As they say, "When the last Bear turns a Bull... SELL!" Well, Don't go out there and Short blindly, but wait to see the first sign of weakness and then jump in. Don't get caught on the wrong foot at such high Levels. It is better to miss the rally altogether than Risking your money. Stay out in Case of ANY Confusion. JUMP IN as soon as you are SURE!

For the day, first support comes near 5740 levels, break of which may see Nifty sliding towards 5710 levels, where buying support is likely to emerge. On the upside, resistance comes near 5780 levels. Realresistance for this upmove will come near 5820-5835 levels, from where, a milk correction may be witnessed.

For 14 Sep - Nifty spot resistance at 5780-5800-5815-5835. Support at 5740-5710-5695-5670 - http://www.niftypower.com/