Nifty View for 18.01.2012

Nifty has finally broken out with a huge gap today and approaching the 5000 mark.What a turn around of fortunes has this series been for investors who have had patience and stuck to their holding in portfolios.Last few days while Nifty was hovering at 4800 and 4900 levels the stocks have moved in a huge way.One can say a great number of stocks have outperformed the nifty.Now what ahead for nifty.Now for spot nifty chart shows us support at 4850 and resistance at 5082 .The fibo fans shows how nifty has been taking supports all along the move.Today its has taken out the resistance with a gap as seen from the charts.Positional traders following the blog are in profits.They can hold positions with a stop loss of 4950 on spot nifty.Those who missed out on the rally could still enter above 4970 with a strict stop loss of 4950 with targets of 5082 on spot nifty.The ADX indicator is finally turning its head and the positive DI has moved substantially above the negative DI.The move may face resistance with the positive DI nearing the 40 level mark.Also the positive DI should maintain above the negative DI and also remain above the trendline shown on chart to achieve the targets.Yesterday 5000CE was given to clients for buy at 22.50 and today booked at 51.Intraday traders can look at the levels given below to trade on spot nifty for 18.01.2012.

Spot Nifty levels for intra-day trade on 18.01.2012
No trade between 4950 and 4985(to avoid whipsaws)
Buy above 4985 with SL of 4965  
for targets of 5002-5019(breakout  level on the upside,add positions) 5036-5053-5070-5087-5104-5121.

Sell below 4950 with SL of 4970 
for targets of 4933-4916(breakdown level on downside, add positions)-4899 -4882-4865- 4848- 4831-4814.
Happy Trading !