Dated :- 26. 10. 2014

                                                                      NIFTY SPOT : 8014.55

Hi,

Readers,

Nifty moved as expected and almost hit all the upper targets mentioned in my earlier blogs. Nifty mad a high of 8031 on DIWALI day almost near to the target of 8050.

NOW What :-

Nifty’s this up move was expected and is good one. The level of 7830 was mentioned by me in my blog dated Oct. 19, 2014, that, till Nifty is above 7830 Nifty will have upward strength.

Charts and indicators are indicating that this move may prove to be good one if it devotes some more time here and holds 7830. Time will tell. But one point which is very important here is that in this move of Nifty from 7730 to 8014 body in candles are virtually missing and Nifty is moving up in gaps only. This is not a good signal. This shows that either this rebound may be weak and force Nifty to fill some of the gaps it has created in last 3-4 trading sessions. OR Nifty will again want to become range bound and want to spend some time in a range and play choppy and volatile. Ideally filling of some of the gaps it has created in last 3-4 trading sessions but not all is healthy for Nifty. If Nifty fills all the gaps and goes below 7830 then the strength in Nifty will vanish again.

Since we have expiry also in this week therefore choppy and volatile moves in Nifty may be expected.

Resistance for Nifty is at 8080-8160.

Support levels are 7940-7880-7830.