Dated :- 06.09. 2015

                                                                           NIFTY SPOT : 7655.05

Hi,

Readers,

Nifty moved as was mentioned by me in my previous blog. Smart money was truly able to eat up the premium in Options.

Now What :-

Nifty as expected kept on falling like any thing and FII’s are continuous sellers in this market.

As I have been continuously mentioning in my earlier blogs also that The downside targets of Nifty are too below beyond the general imagination. I would not like to mention those here to scare the readers. They will take time to come.

This market is sell on rise only. Till the time it does not give any reversal of trend.

40 out of Nifty 50 Stocks are below 200 DMA on daily charts and out of remaining 10 some are just near to breaking 200 DMA on downside.

Now the thing is that what can be the immediate supports for the next week. To me, 7300 to 7515 is the area which can act as strong support for once. This is very strong Support area and it will require additional reasons to comprehensively break this area run through. This area is expected to hold for once and bears may like to or tempted to book profits at or around these levels.

Keep an eye on ADX on Daily chart. Specially on the slope of it. Currently it is around 36.

I would also like to mention here that charts have started indicating that Fresh shorting should be avoided here. But some more immediate downside cannot be ruled out. As specially on hourly charts Nifty has started to make +ve divergence and if that +ve divergence is actually in the making then some more downside is expected or Nifty should spend some time at current levels in some range for +ve divergence to take shape.

Also I would like to share my analysis with readers that my parameters have started giving signals to me that some indicators specially RSI can be expected to take one move upwards in near future (may not be immediately as confirmation is awaited). But it needs some other parameters to confirm that move. One should keep in mind these things together with the strong support levels mentioned above. And if at all that happens, that can even have the power to surprise the traders with an upside move (surprise can be either in speed or in levels).

May be the time is coming to book full profits from shorts for once and enjoy. And wait for Nifty to give next fresh clear signal.

The forthcoming FOMC meeting in mid Sept. can also have its impact on markets.

Trade accordingly.