NIFTY VIEW FOR 29.09.2011

Today Nifty open higher at 5005.50 and went down steady to make a low of  4918.45 and closed the shop at 4945.90.Today bulls were trapped by yesterdays momentum and where kept guessing by the Nifty.Today on the downside we achieved two targets out of four given.Now tomorrow is expiry of September series an important day for traders.Many like to predict the expiry price and act accordingly.Lets see the September range of Nifty till today was between 5169.25 to 4758.85 i.e.410.40 points.the 50% of this range comes to 4964.05 and todays close is 4945.90.So we are still at midway neither up nor down of the range.This is what happens when a huge range is established in earlier month by Nifty.So the ideal range for tomorrow looks between 5018 and 4900 which can be breached if volatility increases on the last day.If I have to stick my neck out for this expiry then probably its between this range and option holders of 5000CE and 4900PE will be kept on their toes tomorrow.

Now on the chart I have marked Fibonacci Fan from top of 5651 on 08.07.2011.We can observe how those fibanacci levels have been adhered to by the Nifty swings.Nifty has spent the whole month of September between 38.2% and 61.8% levels and incidentally closed today near exactly at 50% level.The breakout on the Nifty will be above 61.8% level on the upside and below 38.2% level on the downside.until then we need to watch Nifty moves in this trading range.

LEVELS SPOT NIFTY FOR 29.09.2011
No trading zone between 4928 to 4963 to avoid whipsaws.
Buy above 4963 with SL of 4948 for targets of 4981 - 4999 - 5016- 5034
Sell below 4928 with SL of 4943 for targets of 4911 - 4893 - 4876- 4858
Happy Trading !