Sunday, 23 March 2014

Dated :- 23.03.2014 (SUNDAY)

                                                           NIFTY  Spot   6494.9
Hi,
Readers,

Nifty did exactly the same as was mentioned in my previous blog.
Nifty moved in small range.
It was recommended to positional traders to stay out of Nifty.
Also it was mentioned that for professional traders small trading opportunities will be there and keep booking small profits. That strategy yielded profits.


Now What :-

Nifty is moving in small range.
Now it is the time for Nifty to take a move.
The interesting thing now in Nifty’s chart is that, it is poised in such a way, that it can take move on either side.

Why so, Why Nifty can move upward also?
Answer is that, Nifty’s chart is now also making good Flag pattern on daily chart.
If, Nifty gives breakout of this flag pattern than the trend  which I have been saying that it is up, will resume and Nifty can show higher levels.
Nifty chart attached showing flag pattern.

On the other hand if Nifty does not give breakout of this Flag pattern than it will be inclined to correct.

Now, for Nifty the time has come to take move in coming days.
And the small movement period is going to be over any time.

Levels to watch to trade Nifty :-

On the up side 6535 is very important level and breakout in Nifty will come above 6570.
Aggressive traders can keep on buying N
ifty above 6535 and wait for breakout to happen on upside.
But do keep very tight stop loss of say 25 to 30 points only.
Because in these kind of scenarios false breakouts and breakdowns are market maker’s sweet dish.

On down side 6450 is very important level. If Nifty goes below 6450 and stays below that further downside can be seen.
Keep in mind that stop loss here also should be very tight of 25 to 30 points.

Trade accordingly.





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