NIFTY VIEW FOR 13.09.2012

Spot nifty opened today with a gap at 5404.45 and did not fully close the gap and moved up for the day after making a bottom at 5393.95. The day high came in at 5435.45 and closed the day at 5431.00. A strong close for it as it is the highest close after 14 March 2012 which was at 5463.90. Today we crossed our resistance of 5402.50 and are now positionally long with it. Positional players can hold with same stop loss with target of 5476.00. On futures chart we are at the higher end of the resistance zone between 5392 to 5462. So some profit booking may emerge at higher levels of this band. On futures above 5476 we may target the 5500-5520 zone. Caution is warranted at higher end of this zone for nifty futures and be prepared for a reversal as when it happens. Intraday traders can look at the levels on spot nifty given below to trade on Thursday.

No trade between 5413 and 5449(To avoid whipsaws)

Buy above 5449 sl of 5429

targets 5469-5489(add positions, breakout on the upside),

5509-5530-5551-5572-5593.

Sell below 5413  sl of 5433

targets 5394-5375(add positions,breakout on the downside)

5356-5337-5318-5299-5281.

Happy Trading !!!