Dated :- 21. 12. 2014

                                                                   NIFTY SPOT : 8225.2

Hi,

Readers,

First of all Wishing my Elder brother a very “Happy Birth Day” today.

His Birthday is very auspicious day for me, He inspired me to write this blog and whatever I am today, He holds a very big hand in that.

Nifty moved exactly as was mentioned in my previous blog. Wherein it was mentioned that break below support of 8180 even 8000 is possible.

Nifty did exactly that and even made a low of 7961 and rebounded from there immediately.

Now What :-

Nifty is still considered to be an index which is sell on rise.

Nifty has resistance at 8250-8330 and 8380.

Real test of this rebound will be at 8330-8380. Because these may well be the points from where Nifty may come down again.

Also Bank Nifty is standing at important levels and it is the Bank Nifty which will decide the time, levels and future for Nifty.

Further course of Nifty’s move will be decided how Nifty deals with 8330-8380 levels which is major resistance. Whether Nifty will be able to even reach there or not, time will tell. This is the time to wait patiently and let Nifty speak its trade itself. With clarity of thoughts that :

1)   Nifty is sell on rise till now.

2)   Major Resistance at 8330 -8380.

3)   Good resistance at 8250.

4)   Nifty has made morning star reversal pattern on daily charts showing rebound may want to spend a little time here.

5)   Stochastic on daily chart is not favoring sell at present. Wait for stochastic to favor the sell trade.

6)   Bank Nifty is at critical level will decide the next move on Nifty.

    

     Since Nifty is sell on rise, this rebound in Nifty may fizzle out any time abruptly also. May even not test 8330. Time will tell. Nifty has to prove itself and break certain levels to make sure that the uptrend which is still intact is resuming again. Till it happens Nifty is sell on rise index.