Nifty futures had a good start but could not sustain the gains to the end of the day. The days high was at 5498.70 and the low was at 5257.60. The close was at 5291.60. Yesterday's freak low is yet to be hit on futures. The divergence played out on the earlier part of the day. How to use the levels given here in blog is as per your risk profile. For example the levels of 5571 and 5395 had been given as resistance and pivot yesterday. Today's open was at 5492 and high was just 6-7 points ahead of it. If we average the two levels given (5571 and 5395) we get 5483, so intermediate resistance was hit. One could have taken a call on downside to close the gap. The move below the pivot was more confirmation with the opening gap closed and futures moving into red zone. The target below was 5483 - 5395 = 88 points; 5395 - 88 = 5307 which was achieved with low at 5257.80. The support level no 3 for this August series is at 5218.75 which is an extreme level as we have moved from resistance level no 1 of 6091.50( high for futures at 6139.85 on 23.07.2013). So those who could move with the trend must have been in good profits as the pivot for this month was at 5923.25. For tomorrow we need to sustain above 5218.75 (pivot) with resistance at 5395 and support at 5042.65.
The 4 hourly chart with MM levels shows the breach of pivot of 5313 at the end of the day. The resistance of 5467 was hit today and the down move started. Use 5313 as pivot with same resistance of 5467 and supports at 5156.
The hourly chart for futures with awesome closed with red at the end of the day. Yesterday's green continued with the gap up and then turned down. The first green horizontal resistance marked on chart was hit today and we moved to the channel bottom again. Breach of channel will continue the downtrend. We need to cross the first resistance again for more positiveness. Use 5300 as pivot with 5400 as resistance and 5200 as support.
Intraday traders can use the levels on spot nifty given below to trade on Thursday.
Spot Nifty Levels for Trading on Thursday :
No trade between 5283 and 5320(To avoid whipsaws)
Buy above 5320 sl of 5300
targets 5339-5358(add positions, breakout on the upside),
5377-5396-5415-5434-5453.
Sell below 5283 sl of 5303
targets 5264-5245(add positions,breakout on the downside)
5226-5207-5188-5169-5150.
Happy Trading !!!
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