Spot Nifty continued the trend today sideways to down after opening with a gap up and then moving sideways with gain for the day to close at 5704.60. On chart nifty futures have taken support twice at the 23.60% retracement level of 5698. Breach of this level may lead further to the downside at next fibo levels shown on chart. The resistance again is at 5738-5786-5832. The correction may take longer timewise than price so the premiums of options may erode faster in a sideways move. So it will be prudent to stay out till a clear trend is portrayed by nifty futures. This up move was for 19 days so expect correction to last for 10-19 days from Friday. Today was the third day of correction. Trend players can enter again at 5832 as when it comes and short below 5738 could be taken with stop loss of 5763 for targets of 5698-5608-5537-5467. Intraday traders can look at the levels on spot nifty given below to trade on Wednesday.
No trade between 5686 and 5724(To avoid whipsaws)
Buy above 5724 sl of 5704
targets 5743-5762(add positions, breakout on the upside),
5781-5800-5819-5838-5857.
Sell below 5686 sl of 5706
targets 5667-5648(add positions,breakout on the downside)
5629-5610-5591-5572-5553.
Happy Trading !!!
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