Nifty View for 13.02.2012

Nifty has given a negative close after a positive close above 5400 on Thursday.The price action has turned slightly negative today but needs further confirmation.We could make a new high today with the gap down open which is commendable for nifty.Still a weekly close above 5350 on spot nifty is good for the trend.On downside we are making bottoms around the 5320-5340 levels.So this makes it important level of 5315 to watch for spot nifty.Till we are above this levels we can buy on dips.Break of 5315 will confirm the short term down move as the earlier gap of 100 points is acting as support.Breach of this level on spot nifty can quickly wipe of 100 points as this is faster retracement zone.Positional traders have been saved the agony of sideways move as we missed the level by 3 points yesterday but we have been stop lossed today by 20 points at 5405 breaching as our buy was above 5425.So we need more clarity on move to take fresh positions.On the ADX indicator we are seeing the positive DI moving downwards which is first sign of weakness.But the momentum indicator is up and also negative DI is also down.Look for reversal in both to confirm the move.Intrday traders can look for the levels given below for spot nifty to trade on 13.02.2012.

Spot Nifty levels for intra-day trade on 13.02.2012
No trade between 5363 and 5400(to avoid whipsaws)
Buy above 5400 with SL of 5380 
for targets of 5418-5436(breakout  level on the upside,add positions) 5454-5471-5489-5506-5526-5544.

Sell below 5363 with SL of 5383 
for targets of 5345-5327(breakdown level on downside, add positions)-5309 -5291-5274- 5256- 5239-5222.

Happy Trading !