For nifty futures a range bound play has been the norm for the last month. Same trend continued today we had range bound action of 30 points. Only convincing was the close of 5955.50 at the top end of the range. The indicators do not show the price strength as they are below their highs and price is at upper end of the channel. But price is supreme but one can be cautious if it does not break out of the range on Monday. Time-wise consolidation seems to over so we may see definitive action for this series very soon. This is a time to take action after thorough research before any commitment as we are lacking the momentum. The last series closed in the neutral zone and could not capitalize the initial momentum. On charts it could not reach the top of the channel and we are slowly progressing to the bottom of the channel in a sideways move. The time period when we are near to this bottom of the channel will be critical for the markets. If we progress without a breakout in the same sideways fashion we may come to the bottom of the channel at the end of this expiry or first week of February expiry. Positional traders have the levels of 5898 to watch for longs with suitable stop loss for this series. Intraday traders can look at the levels on spot nifty given below to trade on Monday.
No trade between 5889 and 5928(To avoid whipsaws)
Buy above 5928 sl of 5908
targets 5947-5966(add positions, breakout on the upside),
5985-6004-6023-6042-6061.
Sell below 5889 sl of 5869
targets 5870-5851(add positions,breakout on the downside)
5832-5813-5794-5775-5756.
Happy Trading !!!
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