Nifty View for 03.09.2013

Nifty futures moving on the daily for the first hurdle the yellow parallel line from the bottom of the channel.Today was a gap up opening and gap is not closed for the gap a sure sign of bullishness prevailing for intraday. The close of 5554.60 is just one point shy of our monthly pivot or rather the neutral level for this September series. Anything above this is in bullish zone. So positional traders can use the monthly level for September series to trade as per their risk profile with suitable stop loss. The next resistance levels are 5663 and 5775. Anything below pivot now warrants caution. Supports at 5409 on this time frame.

The 4 hourly chart for futures with awesome shows the level of 5469 held with close above it as this level was a cluster zone for price action. Any weakness in the trend should be watched now below this level. Use 5469 as pivot with target of 5625 and support of 5313.

The hourly chart with awesome for futures is the most clear chart with the futures closing above the first green horizontal resistance after a long time. Also awesome has moved above the neutral zone with a lot of green. MFI looks over bought and awesome is also stretched on this time frame. RSI also has hit a resistance level of 68 which has been difficult to be sustain by futures in recent past. So a caution is warranted by oscillators alround but price action should confirm the caution as oscillators can be over bought or over sold for a long time. Use 5550 as pivot with targets of 5625 on upside and support of 5475 on downside.

Intraday traders can look at the levels on spot nifty given below to trade on Tuesday.

Nifty Futures Levels for Trading on Tuesday :

No trade between 5532 and 5569(To avoid whipsaws)

Buy above 5569 sl of 5549

targets 5588-5607(add positions, breakout on the upside),

5628-5647-5666-5685-5704.

Sell below 5532  sl of 5552

targets 5513-5494(add positions,breakout on the downside)

5475-5456-5437-5418-5399.

Happy Trading !!!