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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Happy Diwali to All Readers!

2 Nov: Nifty View

Nifty has given a fine reversal from support zone of 5935-5940 spot (mentioned to subscribers) and continued its uptrend today. 5935 Spot becomes an important level to keep in mind now below 5980.

On Monday, 1 Nov, Nifty opened with a big gap above its resistance zone of 6070-6075 and never tested it during the day. Hence, this becomes another important level to watch out for the Bulls in the days to come. Below this, Nifty may try to fill the gap right down till 6017-6025 levels. Hence, 6070-6060 spot can be the stoploss for those holding positional longs in Nifty Future as of now.

On the upside, stiff resistance exists at 6130 and 6150/6155 levels. Once above 6150, it can go and test the next strong resistance at 6225. This week has some important news reports on the domestic front (RBI policy) as well as rom the International Markets. Hence, we may see some gap ups and gap downs during the week. Hence, trade light on overnight positions.

For the day, watch the level of 6130 and 6150 spot on the upside. Above 6150, some panic short covering can quickly take Nifty to 6180-6220 levels. On the downside, supports exist at 6105-6095 levels, below which, it may test 6070-6055 again. Overall, trade the range of 6070-6150 now until we get a breakout/ breakdown on either side.

2 Nov: Nifty spot resistance at 6130-6155-6180-6225. Support at 6105-6095-6070-6055-6015 - www.niftypower.com

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