Dated :- 24. 08. 2014

                                                                        NIFTY SPOT : 7913.2

Hi,

Readers,

Nifty did exactly the same as was mentioned in my previous blog. It has achieved the logical targets of 7880 to 7910 as was mentioned in my previous blog.

Readers should also note, that after achieving the logical target on Aug 18, 2014, Nifty spent next 4 days continuously within 7880 to 7910. That shows the importance of these levels.

Now What :-

Nifty is likely face resistance at current level. Which will be decided by Bank Nifty, which is on the verge of making next breakout above 16000. As we all know that Bank Nifty has good weight in Nifty and it can force Nifty to put on further 100 – 150 points. As mentioned earlier also in my previous blogs that it will be Bank Nifty now which will decide the movement of Nifty.

In my earlier blogs it was mentioned that Nifty is in the process of making intermediate top between 7750 to 8148. It has also been explained earlier in previous blogs that there is no harm in leaving last 100 – 200 points, which may or may not be there. And even if they will be there, they will be very volatile. It is always better safe than sorry.

Simultaneously one should be patient enough to wait for opportunity to come and should not be eager & tempted to trade erratically.

Now wait for Nifty to close below 7860 level, Close of Nifty below 7860 will be the first indication that Nifty is starting correction from here only without going to the possible upper end of 8148. Strict Stop loss for the short position below 7860 is 7930.

One should always keep in mind that market makers/operators can any time play smart to hit the stop loss of 7930 as the upper end of the top making process is 8148, they have the cushion to make any false/dummy move to 8148. So be it, when a good trade is coming below 7860 one should take it.  

Thus it is recommended that only professional traders who can handle the volatility and take risks should take the trade. Others should wait for Nifty to break below 7800 to look for correction. We have expiry also in coming week, so, expect volatility.

Time to be cautious and Trade accordingly.