Dated :- 10. 05. 2015

                                                                      NIFTY SPOT : 8191.50

Hi,

Readers,

Previous blog on Nifty was very precise and Nifty moved as was mentioned in my previous blog.

Nifty first of all after crossing above 8210 went up to 8355 and after taking resistance at higher levels fell sharply as was mentioned in my last paragraph of the previous blog that fall in Nifty can only be possible if it is severe one.

Let me quote last paragraph of the previous blog:-

“Looking at the chart structure further immediate fall in Nifty can only be possible if Nifty breaks 8100 with big red candle i.e. run through with severe fall. Also with the second condition that after breaking 8100, Nifty without even crossing 8200 goes below 8000 and stays below that”.

Now What :-

Nifty is now in a range between 8080 to 8350.

Actually let me be more frank and say that charts are indicating that one should refrain (avoid) shorting Nifty at least for next few trading sessions because any fresh shorting will be more justified when Nifty spend some time in a range and then again breaks 8080 on the downside.

Why I am saying that wait before selling Nifty because Nifty Midcap index and midcap stocks charts are indicating that they want to either rebound or spend some time. Means that they do not want to come down in a hurry.

Also some large cap stocks are also indicating that they are oversold and that is the reason that Nifty is now acting in a volatile manner.

Most of the components of CNXNifty are now trading below 200 DMA. This is also the time of consolidation. However problem area for markets now is Bank Nifty which has given a breakdown of big bearish head & shoulder pattern.

Much better strategy for trading is to be stock specific and avoid Nifty. Because till Nifty is above 8080 the more probable trade will be to look for buying in Nifty whenever it comes down to take small profit quickly.

Strategy is to let the Nifty consolidate and be stock specific.

Trade accordingly.