Dated :- 31. 08. 2014

                                                                 NIFTY SPOT : 7954.35

Hi,

Readers,

It was clearly mentioned in my previous blog that Nifty is likely to face resistance at current level. And see, Nifty is actually facing resistance at current level. It was also mentioned that Bank Nifty will decide when Nifty will start correcting. Bank Nifty is also facing heavy resistance at 16000 level.

Nifty is hovering at current level for last 8 trading sessions. It is only index management which is being done here i.e. Nifty is artificially being forced to stay at higher levels.

I have been writing repeatedly since July 05, 2014 that this Nifty will make intermediate top between 7750 to 8148. And whatever Nifty is doing now is a part of top making process.

Readers should also note that in previous blog it was mentioned to go short below 7860. Nifty made a low of 7862 and rebounded again. This shows the importance of levels mentioned in the blog. Market makers/operators know that below 7860 more selling will come thus they use Alogs(algorithimic trading making sure that 7860 is not breached). August expiry also played its role.

Now What :-

Plain in simple words, get ready for correction. Stage is set, correction can start any time. What level is to be taken care of is 7860. Even close below 7894 will be first indication that Nifty is starting correction. Stop loss after the activation of trade shall initially be 7975 closing basis. And gradually trail down the stop loss when Nifty behaves as expected.

Time has come when Nifty has to get out of small trading days range.

Trade Accordingly.