Nifty opened today at near the weekly close level and could not cross the high of Friday. The weakness continues for the day and achieved the projected target of 5350 nearly. Today's fall is not supported by volumes which needs to watched ahead. We are currently in the sideways range of 100 points from 5350 to 5450. It looks time for a bounce back if this bottom level of 5350 is held. The recovery may depend upon price action is supported by volumes or not. On the nifty futures charts we look to be nearing the horizontal channel support . This support if breached then nifty futures have supports at 5336-5312. The breach of 5312 will take us to the level of 5257 if the momentum continues on the downside. This move may take sometime with some bounce happening in between. As the expiry is nearing the premiums of the options need to be eroded turn by turn.(5400CE losing its value today.Who's next may be 5400PE ? Next 5300CE for expiry!!! Who Knows? The option writer's hold the key and they seem to enjoy this last week trading sessions at the cost of traders who try their luck in these days . LOL ! ). The trend is still up which to be kept in mind as depicted by the rising channel. Currently we are poised at the centre of the rising channel. Intraday traders can look at the levels on spot nifty given below to trade on Tuesday.
No trade between 5332 and 5369(To avoid whipsaws)
Buy above 5369 sl of 5349
targets 5388-5407(add positions, breakout on the upside),
5427-5447-5467-5487-5507.
Sell below 5332 sl of 5352
targets 5313-5294(add positions,breakout on the downside)
5276-5258-5240-5222-5204.
Happy Trading !!!
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