NIFTY Spot : 6048.35
Hi,
Readers,
Nifty did exactly the
same as was mentioned in my previous blog.
It was mentioned that
any rise should be used to sell and earn profits.
This sell on rise
strategy yielded profits. May be small.
It was also mentioned
that further downside in Nifty will open only and only if Nifty gives two days
close below 5990.
Nifty touched this
level two times in last week and rebounded from there and did not closed below 5990.
This shows the importance of 5990 level.
This level of 5990 is
very important for line charts in Nifty.
Now What :-
Overall trend of Nifty is
down.
However as of now
Nifty is in a range.
Broader range 5950 to
6350.
Till Nifty is below 6120,
Nifty will be inclined to come down. And on lower side 5990 will be the first
target and only close below 5990 further downside will open.
In the coming days
Nifty has resistance at 6120-6220-6270 and support at 5990-5900-5820.
In coming days 6120
level of Nifty is very important.
Above 6120 it does not
mean that Nifty will be up. It only means that above 6120 Nifty may give small
trade of few points on up side.
Why charts are saying
that above 6120 Nifty may go up few more points ?? Answer is because there is a
gap in Nifty between 6188 to 6260 level.
Whenever after giving
breakdown with gap Nifty goes in range. It tries to touch that gap again. It is
separate issue that whether it succeed in that or not. That effort of touching
the gap will become due once it goes and stays above 6120.
Chart patterns are
showing that tradable move in Nifty is due and can come any time. Low and small
trading ranges are about to give good tradable move.
Thus it is recommended
to trail some quantity with small trailing stop loss on either side. Taking into
consideration that 6120 and 5990 level.
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