Nifty View for 08.02.2011

Nifty opened with a gap up today at 5412.95 made a high of 5413.15 and closed at 5335.15.The spot nifty could not sustain the high today and finally broke below yesterdays close to give a negative close at 5335.15.Nifty could sustain above 5390 twice which makes it a important resistance now.It should close above it to maintain the upswing.Today we have made a lower low i.e. below yesterday's low which is important.So below 5322.50 we may continue on the downside.On the upside we need to watch 5390.On chart I have marked some important levels for the current move on nifty.Positional traders have been stop lossed today at 5355.So we are neutral on the market with no open positions.Hope positional traders have enjoyed the profits.Positionally one can be short below 5315 with strict stop loss of 5335 for targets of 5220.On the upside we can be long above 5425(if it comes) for a target of 5525-5600 as and when it comes.Intraday traders can look at levels given below on spot nifty for trading on 08.02.2012.

Spot Nifty levels for intra-day trade on 08.02.2012
No trade between 5317 and 5354(to avoid whipsaws)
Buy above 5354 with SL of 5334 
for targets of 5372-5390(breakout  level on the upside,add positions) 5408-5436-5454-5471-5489-5507.

Sell below 5317 with SL of 5337 
for targets of 5300-5282(breakdown level on downside, add positions)-5265 -5248-5231- 5214- 5197-5180.

Happy Trading !