Nifty View for 31.01.2012

Nifty has found resistance at the channel top i.e.channel of sorrow for investors from Nov 2010.But the channel top has been tested many times which is to be noted.Whenever a resistance is hit many times it becomes weak so the possibility of breaking over it increases.So one should keep this in mind.Still the channel has been respected by nifty which is amazing how simple technical's work in markets.Those who could follow the channel would have made huge profits.The red trendline's shown in chart need to be watched for further clues on Nifty.Positional traders can short the nifty if it goes below the 60 mark on RSI with targets of 40 mark on RSI.If the 60 level of RSI is sustained then the move may gain momentum on the upside.Intraday traders can look at the levels on spot nifty given below to trade on 31.01.2012.

Spot Nifty levels for intra-day trade on 31.01.2012
No trade between 5105 and 5065(to avoid whipsaws)
Buy above 5105 with SL of 5085 
for targets of 5123-5141(breakout  level on the upside,add positions) 5159-5177-5195-5213-5231-5249.

Sell below 5065 with SL of 5085 
for targets of 5052-5034(breakdown level on downside, add positions)-5016 -4998-4981-4963- 4945- 4928.

Happy Trading !