Dated :- 01.12.2013 (SUNDAY)

                                                                          NIFTY  Spot :   6176.1

Hi,

Readers,

Last week Nifty gave good rebound which was the result +ve divergence in RSI. Which as was clearly explained in my last blog Dated Nov. 24, 2013 wherein chart was also attached showing +ve divergence.

Whenever the breakout of this +ve divergence pattern in RSI happens Nifty always rebound from there.

NOW WHAT :-

Till the time Nifty is closing above 6085 it will trade with +ve bias.

Thus keep trailing stop loss of your long position at 6085 closing basis. So that even if Nifty comes below 6085 one will be in profit.

For non professional traders and those traders who want to take less risk IT IS BEST  TO BOOK PROFITS AND STEP ASIDE and wait for next move to come. Till then play intraday only.

Nifty is still in a range. Broadly the range for Nifty for this week is 6025 - 6350

However corrections will keep on coming.

This is also not the time to be extra bullish in Nifty.

Only ride the trend and movement.

For Nifty 6230 – 6250 is important resistant area.

Keep booking the profits regularly in your long positions.

December month will be very volatile and news heavy.

Book profits on every rise in Nifty and wait for dips.

Till 6350 is not taken out comprehensively Nifty will remain in Range and will be very volatile.

Important point I would like to bring to notice to readers of this blog is that keep an eye on the chart of DOW which can prove to be spoil sport.

DOW has made one candle stick pattern called “GRAVE STONE DOJI” some technical analyst also call it “SHOOTING STAR”.

Interestingly DOW has made this pattern in BOTH DAILY AND WEEKLY CHARTS WHICH IS AN IMPORTANT CO-RELATION.

This candlestick pattern is bearish candle stick pattern. Breakdown of this pattern will inject correction in DOW which may force Nifty to correct. Historically correction in world markets also lead to correction in Indian Market also.