NIFTY AMA

NIFTY AMA	RANGE
5 H – AMA	8012	7995
5 L - AMA	7977	7960
5 AMA	8013	8002
13 AMA	8007	8030
21 AMA	7920	7885
34 AMA	7915	7875
89 AMA	8015	8100
144 AMA	7780	7734

NIFTY BANDS :

SUPPORT :          7915 - 7920
RESISTANCE :    8030 - 8100


First things first. Three cheers on this jubilant time for the Indian Markets.
Nifty has a historic high of 8000++ !!!! Well Done.

In line with our buy on dips expectations and from our buy level of 7620 Nifty has given more than 400 points positionally. In our previous post we had mentioned to book part profits near the upper zone of the resistance band near 7990. Well that target was achieved and crossed with some vigour by the Dalal Street Bulls. We will now trail the rest of the longs with a stop at the support band of the 21AMA which is currently placed at the 7920 zone and will rise with each trading session.

One thing that can be noticed from the AMA table is that the 7970 - 8000 band becomes very crucial for the Nifty to hold onto in order to continue with this momentum and rally. Let me explain. As one can see the 13AMA has risen right upto the 8000 - 8030 zone. Therefore, Nifty should not loose momentum at this stage or else it will fall below the 13AMA which will slightly dampen the bull scenario. There is also overhead resistance in the form of upper band of the 89AMA placed at 8100 which is yet to be crossed for Nifty to go into unchartered territory. Nifty has managed to close above the lower band of the 89AMA and should hold onto this in order to scale up to the upper band and break above it. Thus, the zone of 7970 - 8000 becomes important to protect. Such clues can be only got from the brilliant AMA table.


The AMA table will alert us incase the trend reverses. Till then, Ride this trend up with the remaining longs and our mentioned stop loss. Even if the stop triggers we will still go home with a 300+ point gain.


Cheers.

Happy Trading !!!