Nifty View for 18.04.2012

Nifty opened gap up today closed the gap but importantly maintained above the 5200 level.It made a high of 5298.20 a shade below 5300 and closed the day with smart close of 5289.70.Nifty is still in the range of 5200-5400 of 200 points for last few days.On the chart above the Ichimoku Clouds show us the cloud range of 5369 and 5166.The position of nifty is still in clouds so the position is still doubtful for nifty.It needs to break above the clouds for higher targets or break the below the clouds to achieve lower targets.This range of nifty is taking its tolls on the option premiums which keep eroding with time value and devoid of trend.Nifty has entered the clouds on 23.03.2012 and its still there in the clouds which shows how the nifty trend has been for almost a month now.We need to watch these clouds as and when a break out happens on either side for an opportunity to trade the breakout.Intraday traders can look at the levels below on spot nifty to trade on 18.04.2012.

Spot Nifty levels for intraday trade on 18.04.2012

No trade between 5272 and 5308(to avoid whipsaws)

Buy above 5308 with sl of 5288

for targets of 5326-5344(breakout level on the upside,add positions)

5362-5380-5398-5416-5434.

Sell below 5272 with sl of 5292

for targets of 5256-5238(breakout level on the downside ,add positions)

5220-5202-5184-5166-5148.

Happy Trading !