Dated :- 07. 12. 2014

                                                                        NIFTY SPOT : 8538.30

  

Hi,

Readers,

In my earlier blogs it was mentioned to book complete profits between 8570 to 8630 level and step aside.

In the current week also, even after too much of euphoria Nifty was not able to even cross 8630.

Nifty is being held up to these higher levels by index management. In last 2 days thanks to ITC which contributed a lot to Nifty.

Now What :-

Nifty seems to be losing its momentum and the –ve divergences on Daily & weekly charts seems to be ultimately having its say now.

Looking at Nifty’s charts it seems that Nifty may be getting ready for correction.

For Nifty 8491 is important level and break below that level will force many traders to unwind their long positions.

Another important point I would like to refer here is that if & when Nifty breaks the above level of 8491 watch for ADX also, because many Technical indicators are saying that correction may be around the corner. But this ADX is showing otherwise till now.  Thus if ADX also supports the correction then it further gives confirmation that correction is real.

That correction will give the opportunity to make money by short selling.

On the upside now 8630 will continue to remain major resistance area for Nifty.

Trade accordingly and get ready for correction.