Dated :- 01.11. 2015                                 NIFTY SPOT : 8065.80

Hi,

Readers,

Kudos again.

Nifty moved exactly as was mentioned in my previous blog.

Readers of the blog were clearly informed when Nifty was at 8295 that Monday Oct. 26, 2015 will be the right time to book full profits and step aside. Also it was mentioned that Nifty is expected to open higher on Monday and readers of the blog had the opportunity to book full profits in all long positions when Nifty was at highest around 8330 levels.

After that readers can see that Nifty is falling nonstop daily from Monday to Friday. Nifty has fallen almost 300 points from the high and made a low of 8044 on Friday (Oct 30, 2015).

Readers of the blog would have enjoyed the fall in Nifty.

It is all GOD’s grace.

Now What :-

Now Nifty is standing at a very interesting stage.

The trend line of the move which started from 7558 is at 7950 and the channel support is coming at around 8000 levels.

Bollinger band support on daily charts comes at 8009.

50 DMA on Daily charts is standing at 8015.

Interestingly when Nifty was above 8300 it was above all the moving averages except Simple 200 DMA. Now today when Nifty is at 8065 it is below all the moving averages except simple 50 DMA.

The cluster of support areas mentioned above are not so strong support areas on stand alone basis. But if we look at chart with other indicators and combine them, then, 7880 to 7950 comes out to be a good support area. where Nifty is expected to take a pause and may rebound. Technically Nifty is expected to rebound from those levels. Thus one should book full profits in Nifty short positions accordingly.

On the up side 8240 remains as resistance for Nifty.

Broadly we can say that Nifty is in an overall range of 7880 to 8240.

The above analysis is based on pure technical basis.

Just to inform the readers that too much bad news are coming. For example the News from Moody’s and S&P, US Fed indication of raising interest rates in December policy and below expectation results from many markets leaders etc.

These kind of news events sometimes affect the market, because it jitters the confidence of traders to make positions.

Just keep an eye on these events also. But we prefer to trade technically keeping the events in mind only.