Nifty futures on weekly chart show the price action heading for channel top. Today was the day when futures took caution to the wind and surpassed the targets of all. RSI has reached the resistance of 55 from where it started the fall earlier. Now it needs to be watched whether it sustains above the level of 55 to hit the 68 level which has been a big level of resistance on it. MFI is near 40 levels; so watch it; if it crosses the 40 level and sustains above it. Breach of 5775 will be the early sign of correction on this time frame.
Nifty futures on the daily time frame the level of 5775 was the intermediate resistance level so anything above it was breakout for trend players. Those who could take positions as per it are in profits. The next resistance level of futures for September is at 5997 which is incidentally the channel top on the weekly chart. Today the system shorts were squeezed out and it would be interesting now to watch the trend after this aim is achieved. The intermediate level between 5997 and 5775 to be watched is 5886 for this time frame. Also we have crossed the red line in the channel and sustaining above it will good for trend.RSI is heading for 68 level of resistance and needs to be watched. MFI is heading for 80 level of resistance so please watch it. Use 5875 as pivot with resistance of 6000 on the upside and supports of 5750 on downside.
The 4 hourly chart with MM levels shows the level of 5781 taken out with a gap which was clearly a breakout. The next level of resistance is at 5938. So for tomorrow if we sustain above 5938 then the trend is positive or we may see consolidation between the levels of 5938 and 5781. Breach of 5781 will be early sign of caution.
The hourly chart for futures with awesome shows single red at the end of the day. On price action the second green resistance was taken out with a gap up and we held above it for the day. Hope there was no confusion for those who are following it. The next resistance on this time frame is shown by the third green line at level of 5960. RSI has reached level of 83.48 which is higher than earlier top. So does it mean price has to do a lot of catching up is the question arising at the back of mind. So we need to ponder on it as time will tell the result. So always trade on levels to avoid any confusion and trade without any sentiments between you and your trades. Use the indicators as guiding tools but be firm on levels because " BHAV is BHAGWAN". and only price will give you profits. Use 5875 as pivot for this time frame with 6000 as target on upside and 5750 on downside. The target is same as given earlier as price is moving ahead of time so when time is right it will square the price.
Intraday traders can use the levels on spot nifty given below to trade on Wednesday.
Spot Nifty Levels for Trading on Wednesday :
No trade between 5878 and 5916(To avoid whipsaws)
Buy above 5916 sl of 5896
targets 5935-5954(add positions, breakout on the upside),
5973-5992-6011-6030-6049.
Sell below 5878 sl of 5898
targets 5859-5840(add positions,breakout on the downside)
5821-5802-5783-5764-5745.
Happy Trading !!
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