Nifty View for 16.12.2011

Today we broke the 4700 level on Nifty and closed above it.The spot nifty closed just below our risk management level of 4750.So in short the trend is down.The down move from 5399 to 4639 = 760 point on spot nifty.The 50% level of the down move is at 5019. We have retraced above the 50% level on 07.12.2011.The high of 07.12.2011 was 5099 from there we moved down to 4728 a move of 371 points.The 50% level of this move was 4913 but we could move up to 4840 only which is weak.We were twice resisted at that level.From 4840 we moved down to 4673 today which is 167 points.The 50% level was 4756.50 which was crossed today but we could not close above it which is again weak.So for positional players now the level to watch for longs is 4756.50 on spot nifty.Below today's low we will be challenging the low for the year at 4639.Tomorrow's close is critical for spot nifty and a close above 4850 will be positive for next week.Intraday traders can watch for levels given below to trade for Friday.

Spot Nifty levels for intra-day trade on 16.12.2011
No trade between 4729 and 4764(to avoid whipsaws)
Buy above 4764 with SL of 4744  for targets of 4781-4798(breakout  level on the upside,add positions)-4815-4833-4850-4868-4885-4903.
Sell below 4729 with SL of 4749 for targets of 4712-4695 (breakdown level on the downside, add positions)-4678 -4661 -4644- 4627- 4610-4593.
Happy Trading !