The above chart is one minute chart of Nifty from the high on 21.09.201.I have been advocating the use of 45 degree angle for judging the trend.The angles marked show its utility on the chart which automatically gives the supports and resistances.So for Monday the first level to be watched is 4931 as Nifty is trying to form a base around the 4863 level.If Nifty opens with a gap up or stays above 4931 it will set the short term trend.If this happens then the levels as per chart are 4986-5039-5080-5112.The 20 day simple moving average comes to 5006 so this will be the ideal resistance above 4986.As Nifty has closed near the bottom end of the range formed the recovery will be painful and definitely a wild one.We still have four days for the expiry so there will be some drama.Lets not forget we had a huge downside earlier month in August.Normally after such downtrend we see a sideways move of lesser range of 200-300 points.Also Nifty has recovered in the past near the expiry .Use of proper hedging will save the day for traders.Keeping day to day view with intraday trades will be ideal as the swings will be vicious.
Happy Trading !
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