Nifty Update

Nifty has been oscillating within a range of 200 points and reached the bottom end of the range today near 5450. As mentioned earlier 5400 remains a crucial support for the market and only a sustained closing below the same will alter the bullish set up. Our buy at 5500 stands and we remain positive on the market for the medium term for target of 5900+.  The risk to reward here is highly favourable and i would advise one to go long with an appropriate SL.

P.S: - (This however does not transalate into any bullishness for the long term as our extremely pessimistic view and long term target of new lows in the market remain firm. I will be coming up with an interesting article soon on why one should be bearish on equities as a continuation of our BIG BANG post).

Watch this space for more!!!

Nifty Update

NIFTY IN SUPPORT ZONE

The chart shows a clear uptrend followed by a correction till the support zones. A 20-50 moving average crossover has taken place. Only a move below the support levels of 5450-5400 will alter the bullish set up.

Profit Booking at 5750 helped us lock in our gains and nifty reached near our buy and support level of 5500. 5400-5500 continues to remain a strong support area for the market and we may now expect nifty to rally towards our previous target of 5900+ after having corrected by 250 points (50% retracement) from the profit booking level of 5750.

So the view remains positive and we re-enter our longs at 5500 levels with the stop loss of 5400.

Risk : 100points
Reward : 400 points

Nifty Update

Markets on a linear upmove!!! Up 400 points from our BUY.
Nifty has reached the resistance zone of 5750-5780. I would recommend one to book their profits at these levels and re-enter at lower levels as markets are extremely overbought at the current levels. Nifty has moved up vertically by almost 550 points from its low of 5195 and it would be prudent to book out profits at current levels even though we maintain our  target at 5900+. Part booking is an essential tool in trading and provides one with more ammunition to trade in the market. So book profits and look for buying opportunities near the support regions of 5450-5500  i.e. if that comes :) (a 50% retracement level for the entire upmove provided nifty halts below 5800)