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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13 Oct: Nifty View

Nifty moved in a broad range today giving opportunity for both long and short trades to traders. Nifty started falling from the opening trades right till our last support zone given at 6060 (actual low 6068.2!). In the past few days, we have been talking about the importance of 6070 and 6140 levels. These levels have still not been breached on closing basis. Till we get a breakout for a broader range, intraday traders can trade this range of 6070 - 6140 for smart gains.

At NiftyPower, we took two trades today. First one a buy at the support zone of 6170, which unfortunately, just touched our stoploss before reversing. We took the long trade once again after Nifty confirmed support at our final support level of 6060. This trade gave us good 25+ points.

Now for 13 Oct, the support for Nifty still comes at 6070, below which 6040 can be expected after a minor bounce from 6060 levels. The high OI at 6200 PE indicates a good support near those levels, which can get tested if 6040 is breached. On the upside, immediate resistance for Nifty comes at 6110-6120 levels above which it can again test 6140/45 and 6175/80 levels. Trade this market with both long and short trades till we break the range of 6070-6140 on closing basis.

13 Oct: Nifty spot resistance at 6110-6120-6145-6175-6185. Support at 6090-6070-6060-6040 - www.niftypower.com

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11 Oct: Nifty View

In the Nifty View of 7 Oct., it was given that "........watch the action at 6070 and 6140 levels if they come. Intraday traders can trade this range of 6070-6140 till we get a confirmed move above or below these levels....". Nifty made a high at 6147 at opening itself and then started falling to make a low at 6167. At NiftyPower, we went long near the support levels (red circled region in chart) for easy 20+ points of gain.

Now for 11 Oct, strong support for Nifty still comes at 6070/6060. Resistance for the upmove will now come at 6125 and then again at 6140-6145 levels.Above 6145, Nifty will trade with a positive bias and would again enter the trading range of 6140-6220. Intraday traders watch the action at 6100 levels for directional clues. If Nifty manages to hold 6100, it can go on to test 6125 and then higher levels. Failure to hold 6100, however, would invite fresh shorts for break of supports.

11 Oct: Nifty spot resistance at 6125-6145-6160-6185. Support at 6100-6085-6070-6060-6035 - www.niftypower.com

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