Dated :- 03. 08. 2014

                                                                           NIFTY SPOT : 7602.6

Hi,

Readers,

Nifty did exactly the same as was mentioned in my earlier blogs. This is the power of technical analysis for us.

It was clearly mentioned in my blog dated July 23, 2014 to book complete profits in all long positions when Nifty was at 7795.

Let me Quote the words of my blog dated July 23, 2014

 “Now, Nifty may face resistance at various levels. Time and levels are not far when Nifty will get exhausted and will be inclined to correct. And that correction can be very painful for bulls.”

Look the same is happening now. Nifty corrected more than 240 points from the high in no time.

Nifty closed exactly at the point which was mentioned by me as support area in my previous blog.

Now What :-

It is better to book full profits from short position. As we have credit policy also on Aug. 05, 2014.

Because now Nifty may want to spend few time between the range of 7450 to 7720. Time will tell.

Now from hereon Nifty will be volatile in at least first half of coming week.

And next major support is at 7450- 7420 levels.

Now resistance levels for Nifty is at 7720 and then 7810.

Between these support and resistance levels there will be small trading opportunities in both sides.

However, I would like to inform my readers that in case Nifty is willing to carry on this bearish momentum further then it has to fulfill this condition.The condition is that fall should be gradual and volatile without closing above 7750 in coming days. Close below 7450 will make double top pattern in Nifty which is considered bearish.

Trade accordingly.