Tuesday, August 7, 2012

Nifty View for 08.08.2012


Nifty had a wow day today as it made a new swing high at 5350.10 and closed the day at 5336.70. As mentioned yesterday history repeated itself after a month or so. Only difference is that it made a slight higher high but the close is lower at 5336.70 than the close of 5345.35 of 10.07.2012. On charts nifty hit the Bollinger bands and closed a little lower. Stochastics is in the over-bought zone yet no reversal signal is formed on it. But it can remain in this overbought zone if the move is strong enough. This is where levels become important while trading and setting targets. Currently it looks like a double top on spot nifty on today's close. Further momentum on spot nifty will be seen if it sustains above the 5350 levels. Supports at 5329 on spot nifty with 5300 being crucial for this trend. Resistance on spot nifty appears at 5403-5476 ahead. Intraday traders can look at the levels on spot nifty given below to trade on Wednesday.

No trade between 5318 and 5355(To avoid whipsaw)


Buy above 5355 sl of 5335


targets 5374-5393(add positions breakout on the upside)-


5411-5430-5449-5468-5487.


Sell below 5318  sl of 5338


targets 5299-5281(add positions breakout on the downside)


5269-5251-5239-5221-5203.


Happy Trading !!!

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