Today Nifty did 1-2-4 with gap down jumping down from direct 2 to 4.On the way it broke the important level of 4933 on intraday basis.Only small consolation is close above 4933.Nifty move is very steep as it has covered 7 days territory in 2 days which is very alarming.Traders need to be very cautious keeping a hourly vigil on Nifty levels for their intraday trades.Safe traders need to be out of markets for a while till some stability is restored.The trend is clearly down till Nifty does not close above 5060.Now the gap down will act as resistance like the one between 5200-5319.Whenever such gaps are formed they set the direction of the trend.Also closing below 4933 will accelerate the downward momentum.For any hope for the up move to continue Nifty should consolidate between 4933 and 5060 for 2-3 days atleast.
Monthly action for Nifty has been in a channel of 460 points between 5180 to 4720.The battle line between bulls and bears can be seen at 4950 level at centre of channel.Earlier this battle line was 5180 levels which was broken down convincingly.So breaking of 4720 can give us a down move of 230 points at 4490 levels.Be cautious!
Levels to watch on Spot Nifty :No trading zone between 4964 to 4929 to avoid whipsaws.
Buy above 4964 with SL of 4949 for targets of 4982 - 5000 - 5017- 5042
Sell below 4929 with SL of 4944 for targets of 4912 - 4894 - 4877 - 4852
Happy Trading !
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