Dated :- 12. 07. 2015

                                                                 NIFTY SPOT : 8360.55

Hi,

Readers,

Nifty came down as expected and as was mentioned in my previous blog.

It was clearly mentioned that Nifty is sell on rise only.

Nifty fell sharply and surprising the traders on the street but the readers of the blog knew it in advance that fall is more or less inevitable and it is coming. Same happened. Nifty fell around 250 points from the high within the week.

Now What :-

The overall view is same as mentioned in detail in my previous blog.

Nifty has made bearish gap on daily chart below 8485. Till that gap is holding sudden selling in Nifty will keep on coming and one can expect lower levels.

Nifty is also trading below short term trend line which is at 8475.

And 8463 is multiple resistance point coming from different parameters.

Just look, it is interesting that various parameters are indicating virtually same level.

Meaning there by that 8485 shall be considered as good resistance. But one should also keep in mind that whenever these kind of multiple levels are taken out good short covering can also take place.

For short term trading one should read the below points carefully :-

My special strategies are indicating that 8402 to 8423 is very important level. One can consider this to be the level which may act as trend decider for coming week.

My special Bollinger Band is indicating that below 8297 lower levels are coming.

Thus, if we interpret the above for short term trading. One can consider that Nifty may well be in the range between 8290 to 8430.

Special point to mention here is that if Nifty breaks the range on the up side then one should keep in watch that Nifty also crosses and close above 8485 (the gap resistance). Otherwise the gap will give resistance. In that case trend decider levels will help to decide which side of the trade one should be.

Within next 5 – 10 trading sessions there is high probability that Nifty may ultimately give 150-200 points or more move on one side from the current levels of 8360. The level mentioned above will help in trading the side of move.

The result season is also starting thus volatility will be the name of the game. Also. The Greece Drama is coming at its climax.

Trade accordingly.

I wanted to share some other technical facts namely :-

Ø 200 and 50 DMA’s.

Ø Saucer like pattern on hourly chart in the making in Nifty and Bank Nifty.

Ø Inverted H & S pattern in Nifty and Bank Nifty

But I thought that those further information’s may confuse the readers.

Another important thing is that weakness in Bank Nifty is must for lower levels because otherwise it can prove to be the Joker in the pack. It has made double hammers on monthly charts. Very important and rare pattern and one should keep an eye on it.