Date 24-04-2016                                                Nifty Spot 7899.30

Hi,

Readers

Nifty moved exactly as was mentioned by me in my previous blog dated April 17, 2016.

Wherein it was mentioned that I will be a seller in Nifty between 7950 to 8000 levels. Nifty faced heavy resistance between the levels of 7950 to 8000 and made the high of 7978 only.

IN all the 4 trading days in the truncated week Nifty gave the opportunity to sell it daily and whosoever would have shorted Nifty on the basis of my blog would have made money in all the four days of the week.

Overall, Nifty however did not fall much, but, on all the trading days on intraday basis Nifty gave good rewards.

If the Nifty would have fallen more, then, their would have been more rewards. This is market, it decides the rewards itself and one should be satisfied with it.

Readers would be remembering, that, I mentioned in my last blog that, Nifty should face heavy resistance between 7950 to 8000 as it is not supported by indicators. And without indicators it can not move up run through. It has to fall or has to stop there and consolidate which it has done.

Indicators are like oxygen, and if, oxygen is not there then one cannot move on.

Same happened.

Can we say that consolidation is complete ???

Answer is  NO.

But this consolidation of 4 days was a consolidation no doubt and has its impact.

As they say "Mehndi lagi hai toh rang toh layegi".

This consolidation on my charts has acted as borrowed oxygen and allowed moving space to Nifty of further 100- 150 points.

Which means that now the level of 7950 to 8000 has now shifted to 8050 around levels plus minus few points. Where indicators will again be divergent with Nifty’s up move.

Remember that indicators are still not fully supporting up move of Nifty, they have only allowed breathing  space to Nifty. As if, indicators are having a cup of tea.

Now What :-

Now Nifty is standing at very crucial point at 7899.

Nifty has also made Doji on weekly charts.

On short term charts many indicators are now co-inciding, which indicates that time has come for Nifty to move on 100-150 points in either side in next few days.

 If the breathing space was not provided by indicators I would have easily said that Nifty will certainly fall from here. But since breathing space is provided. Which means that in next day or two Nifty is ready for a move of 100- 150 points on either side.

Which levels to watch :-

The levels on the upside are 7935 and on lower side are 7870. Just 65 points band.

If Nifty stays below 7870 for some time then it would mean that the intermediate top has been formed by Nifty. And Nifty is coming down and lower levels are coming.

Remember, keep shorting Nifty below 7870 for lower levels again and again even if Nifty gives any false move after staying below 7870. Because illusions and volatility are sometimes created for weak hand traders who gets fearfull sometimes.

If Nifty stays above 7935 for some time then it would mean that Nifty is using that breathing space and may want to move up further as explained above, in that case 7870 will act as stop and reverse level means exit the long position below 7870 and short sell at that point for lower levels.

I am repeating that, Nifty’s up move now is not supported by indicators. Which means that now it is just a matter of time when Nifty will give correction. Nifty can only use the breathing space provided to it by indicators. That too in next few days.

In nut shell, Because of the breathing space provided by indicators, Nifty stay above 7930 level of 8050 around level is not ruled out. Stay Below 7870 correction is coming. Keep selling below 7870 again and again.

Trade accordingly.