Dated :- 16.10. 2016                                 NIFTY SPOT : 8583.40

Hi readers,

Nifty came down in last week as expected. I have been writing constantly in my blog that Nifty has made such a pattern that it will come down because it has made an intermediate top.

Now What -

Now Nifty is on the verge of breaking bearish head and shoulder pattern on daily charts. Close below 8540 will confirm the breakdown of that bearish head and shoulder pattern.

On the upside 8730 will continue to act as very stiff resistance.

At present the pattern Nifty is making, the fall should have been sharp and severe. Since the fall is slow the Readers should note that the coming week is going to be important week for short term traders. Because one of my special indicator is placed at such a location which happens in case of breakdown and that too full and sharp breakdown but Nifty is coming down slowly.

Now Nifty should either in next few days fall sharply run through and give breakdown of the bearish head and shoulder pattern and match that indicator or otherwise my special indicator will force Nifty to give a trading rebound.

I am not at all sounding bullish. I am only saying that my indicator has gone to such a location and waiting for breakdown to happen now either breakdown should come fast or else it will force trading bounce which will again be a selling opportunity.

The strategy is to look for fresh selling possibilities if Nifty stays below 8532  for some time expecting sharp fall with the small stop loss of close above 8600. If the sharp fall does not come below 8532 then in that case also exit the short position without waiting for stop loss level. Because in that case Nifty may rebound that will be a selling opportunity again.

Crux is to sell again when Nifty stays below 8532 for some time for a run through fall or otherwise wait and watch Nifty's movement because in that case Nifty can bounce also and that bounce will be a selling opportunity.

Trade accordingly.