Nifty View for 06.09.2013

The above chart for futures shows the trend lines target hit today at 5632. The channels have been followed by Nifty futures very well. Anything above the level of 5632 is positive and below it may come be corrective. 

The daily futures opened with a gap up at 5551.60 and if blog readers had kept in mind the pivot of 5555 then it was positive above it. The close is above the pivot so watch this level carefully as next level is at 5775 and supports at 5259 on this time frame. Intermediate level above  5555 was at 5665 and we have hit a high of 5640... so now 56640-5660 is initial resistance. We sustained above this zone then 5775 level can be challenged.

The 4 hourly chart with MM levels shows the gap up above 5469 and we hit the nest level of 5625 and closed below it. Use 5625 as pivot with resistance at 5781 and supports at 5469.

The hourly chart shows the break out or gap up above the first green hurdle of 5551 and we closed above it. Watch this line very carefully; if sustained above it we can challenge the level of 5752 with intermediate resistance of 5651(high of today at 5640). Use 5600 as pivot with resistance of 5675 on upside and 5525 as support on downside. Below 5525 the next support is at 5450 if profit booking comes heavily at the end of the week. Closing above 5600 will be positive but take positions as per your risk profile as we have still many days to go about in this series. Sometimes things go to our heads very easily and then we get stuck in unwanted positions too soon and repent by paying the back heavily.

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

Spot Nifty Levels for Trading on Friday :

No trade between 5574 and 5612(To avoid whipsaws)

Buy above 5612 sl of 5592

targets 5631-5650(add positions, breakout on the upside),

5669-5688-5707-5726-5745.

Sell below 5574  sl of 5594

targets 5555-5536(add positions,breakout on the downside)

5517-5498-5479-5460-5441.

Happy Trading !!!