Nifty View for 17.02.2012

Nifty was volatile yesterday after a gap up rally.So it can be consolidation again as prices are covering huge targets in a single day with gap ups leaving retail participants out with disbelief.So only those with positional views have been profiting in this rally and making use of the gap-ups on nifty.Our positional call of 5600-5625 has hit stop loss at 5525 yesterday.So we are out of markets with profit of 100 points as we had initiated positional buy at 5425.We have been stop lossed once with a stop loss of 20 points.Second entry was profitable with net gain of 80 points.Positional traders we can enter again at 5525 with targets of 5600-5625 with stop loss of 5505.One can enter again at same levels if stop loss again.A break-out above 5575 can lead to higher targets of 5900 as shown in charts.But one needs to have patience and monitor trades as per the situation.So do not rush to buy out of money calls.Always work in the money options where you derive sure profits if your entry is correct.Trend is clearly up as shown by Force Index see the last spurt on it.The GMMA cluster of averages is showing that the short term averages clearly above the long term averages and both the groups pointing upwards.As per the fibo fans there could be consolidation between the range of 5300-5600 i.e. 50% to 61.8% levels.One needs to monitor this zone for further clues.The PSAR level comes to 5376 which will be provide further clue.Intrday traders can look at levels given below for spot nifty to trade on 17.02.2012.

Spot Nifty levels for intra-day trade on 17.02.2012
No trade between 5503 and 5540(to avoid whipsaws)
Buy above 5540 with SL of 5520 
for targets of 5560-5578(breakout  level on the upside,add positions) 5596-5615-5634-5653-5672-5691.

Sell below 5503 with SL of 5523 
for targets of 5485-5466(breakdown level on downside, add positions)-5448 -5429-5411- 5393- 5374-5356.

Happy Trading !