Dated :- 07.02. 2016                                 NIFTY SPOT : 7489.10

Hi,

Readers,

Nifty moved as anticipated but the market volatility and the RBI policy reaction did its trick and forced Nifty to close below 7400 for once. And then from next day onwards it ultimately rebounded to 7503. Nifty sometimes does not oblige us with pin pointed levels.

The analysis would have been more simple if Nifty would have closed this week above 7541.

But since it has given close at 7489 below 7541 Nifty will remain in complex range. Remember this 7541 has another significance also, this is the level which triggered  fresh breakdown in Nifty some days back.

Now What :-

Now Nifty is broadly in a range say between 7320 to 7600.

And charts are giving conflicting signals as on today.

In such scenario it may well be better strategy to step aside for next week and wait for the market action.

But, what one should do by stepping aside.

Frankly, I want to write that Nifty may well be considered as buy on dips till 7320. But Nifty charts are not giving me confidence to write that.

But does it means, that, I should buy Nifty now, or on Dips.

The answer to that is NO.

Though I want to look for buying possibilities till 7320 is protected but Nifty chart is not giving clear buy indications, thus I would like to wait for clear signal.

One of that Signal may be, if Nifty does not go below 7436 and spend at least two more days between 7436 to 7542 and then moves above 7542 and in that process obviously closes above 7542 on same day. Then we can say that Nifty wants to move up. This is only one of the probable indication, Nifty has the habit of deciding its own path itself.

Trade Accordingly.