NIFTY SPOT : 7982.90
Hi,
Readers,
Nifty movement
was precisely as was mentioned by me in my earlier blog dated June 07, 2015. Wherein it was clearly mentioned that Nifty will trade with –ve bias
below 8100 and any and every downward movement has to be fast and Nifty also
achieved the down targets of 7950. And it was
also mentioned that if Nifty does not come down fast then wait.
Nifty did
exactly the same, it came down as expected, and it came
down fast as mentioned.
Readers of the
blog would have enjoyed the down move of Nifty however a one day rebound in
between on the back of news would have reduced the profits but still there were
good profits in the end.
This is the
power of technical analysis. The analysis gave straight information that down
move has to be fast. And look the same happened.
Now What :-
Now since
Nifty is stalling here and also indicating by its Friday’s movement that it no more further wants to come down fast. First thing one should do is
to first protect his profits from short positions. Thus book full profits for
once in short position in Nifty and step aside.
Why Book
profit for once :-
1)
Nifty is making +ve divergence
on hourly charts.
2)
Nifty is also making +ve
divergence on daily charts also. But this daily charts +ve divergence is less
important here due to technical reasons.
3)
As per my analysis important
point to watch is 8012 and if Nifty goes and stays above that then Nifty is
well poised for a good rebound. And if that
happens then as per one of my developed technical pattern/combination this
rebound may even has the capacity to surprise on the upside. And it may force those
people who are short to run and cover their positions.
4)
It also seems that Nifty may
well be loosing the fast downward momentum here.
5)
There are some other technical
reasons/indicators showing that if rebound comes from here then they are ready
to help that rebound.
See, for any rebound to come Nifty has to cross and stay above
8012. One can also interpret it like this that If Nifty goes and stays above
8012 then no short position is justified.
As per me if 8012 is very important level for the coming week.
If Nifty goes and stays above that look for buying possibilities.
Monday only Scenario :- Only
possible scenario for the down move to continue is that, if from Monday itself,
Nifty again starts its fast move on
down side run through. But even in that case also book full profits on Monday
itself. Because in that case also 8012 will again remain important level.
However this scenario is less likely.
As this 8012 is just 30 points away from current close point of
Nifty.
In nut shell till Nifty is below 8012 either wait or step aside(except for Monday scenario only).
And above 8012 look for buying possibilities
for the next week. Means stop shorting Nifty for once other then Monday only
scenario.
Trade accordingly.
