Dated :- 17. 05. 2015                                 NIFTY SPOT : 8262.35

Hi,

Readers,

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

It was mentioned that Nifty is in a range between 8080 to 8350. And avoid shorting till Nifty is above 8080.

Look the same happened Nifty moved within the range only and it touched 8333 on the up side an 8089 on the lower side and remain very very volatile. But see even in extreme volatility Nifty respected the range.

Volatility was on its extreme in last week but readers of the blog would have enjoyed that also as it was mentioned that try to buy on dips and take small profit and run away. Readers would have made profits in that volatility. Also like mentioned in my previous blog many Mid Cap stocks moved up in last week.

Now What :-

Now in the coming week it is the time for Nifty to move out of the range and give a good tradable move.

Looking at the chart it looks that there is good probability that coming week can witness good move on one side. In technical terms as we say full body candle either RED or Green.

Now the range of 8080-8350 is about to give way to tradable move. Rather even above 8300 Nifty is giving inverted (Bullish) Head & Shoulder pattern breakout and above 8350 there are multiple breakouts on smaller time frame charts. In case of breakout on up side first probable targets are 8500-8550 and in case of breakdown first probable targets are 7900-7850 on lower side.

Interesting co-relation I would like to tell to readers, is that, for the last 10-11 trading days the pattern or small structure Nifty is making identically resembles the pattern it made when Nifty was at 5100 in end of August 2013. From where Nifty gave sharp reversal towards upside. I am not at all saying that it will happen again. I am only providing information that pattern Nifty is making is resembles to that pattern.

But Since, Nifty is spending too much time within the range and traders and waiting on the side lines to latch on to the move on range breakout. This increases the possibility of false breakout for once and sharp reversal thereupon on other side.

Readers should be cautious about that also and be ready to play the reverse move also.

Point is to be ready to play the move.

Trade accordingly.