Dated :- 15.11. 2015

                                                                          NIFTY SPOT : 7762.25

Hi,

Readers,

Welcome back after Diwali.

Continuing its downtrend, Nifty is coming down continuously from 8330 and now today it is standing at 7762.

Readers of the blog would be sitting happy as we had identified the top in advance.

Now What :-

Now Nifty has done 76.1% retracement of the rise it made from 7539 to 8336.

Hourly charts are showing that +ve divergences are in the making.

Stochastic is also in oversold zones.

Daily RSI is also at 30.

Frankly charts are not giving any clear indications for any immediate move. But one thing is certain that Nifty is coming in the area where it has started saying that rebound in Nifty is round the corner.

Now whether it will come immediately or it will come from lower levels will be identified by smaller time frame charts at that time only during the market times. Thus I am not writing it today that from where rebound will come because charts are not giving exact levels as on today. However I am writing below, what I expect to happen.

Let me explain my understanding of charts in detail :-

Fresh selling at current levels in Nifty should be avoided because risk reward ratio is not favorable.

Nifty has already made a low of 7730 on Friday.

Nifty support levels are 7680 to 7708 and then 7503 is major support.

I expect Nifty to take support at around this 7680 to 7708 levels and give one rebound. But as I had mentioned earlier also that charts are not giving full clarity as on today it will be decided during the market times. But, I consider that to be most probable scenario.

On the other hand if by chance Nifty goes run through to 7503 around level without rebound (which is very less probability) then do not panic but as per my analysis rather go and buy Nifty.

Let us talk about resistance levels they are at 8036 and 8210.

I have given you the plain charts reading and analysis.

Trade accordingly.