Dated :- 05. 04. 2015

                                                                          NIFTY SPOT : 8586.25

Hi,

Readers,

Nifty rebounded as was mentioned in my previous blog.

Oversold levels in Nifty made this rebound happen.

Now the million dollar question is that how far this rebound will go. The question may well be answered by RBI credit policy.

Looking at the chart the ideal level to go short again is between 8730 to 8800. But the question is whether Nifty will actually go to that level or not. Time will tell.

In case if Nifty does not go to that level in that case Nifty is expected to be in the range between 8350 to 8650 because of result season also.

The analysis of the chart is that Nifty is sell on rise at present. But the ideal level to sell on rise are around 8730 to 8800 levels. If Nifty does not reaches to those levels of 8730 -8800 then Nifty is sell on rise after a consolidation i.e. if Nifty does not move up then selling is justified after a consolidation when Nifty spends some time in the range then further narrows the range and give breakdown of the range.

Till the time above does not happen, stock specific approach should be adopted and trading in Nifty may be avoided and one should allow Nifty to chalk its path.

Trade accordingly.