|
NIFTY AMA
|
RANGE
|
|
|
5 H – AMA
|
6170
|
6132
|
|
5 L - AMA
|
6090
|
6060
|
|
5 AMA
|
6140
|
6099
|
|
13 AMA
|
6252
|
6292
|
|
21 AMA
|
6223
|
6205
|
|
34 AMA
|
6236
|
6220
|
|
89 AMA
|
6136
|
6065
|
|
144
AMA
|
6054
|
5967
|
NIFTY BANDS :
SUPPORT : 6140 - 6170
RESISTANCE : 6220 - 6250
Nifty staged the expected bounce back not only within our expected time frame but also as per the range in the AMA table. How spectacular is that ???
Nifty having taken support at the 89AMA rallied and took resistance exactly at the resistance band mentioned in yesterday's post. Now post the RBI Policy a lot of traders would have turned bullish, but Nifty has respected the 34AMA as a formidable resistance. Therefore, one may create shorts as mentioned with the 34AMA as a SAR. Only a close above the 34AMA will bring in further bullishness or else this bounce may well turn out to be a bull trap, post which Nifty may resume it's downtrend. The confirmation for this downtrend will obviously come on break of the rising 89AMA from which Nifty staged it's bounce which will dramatically strengthen to the bearishness.
The risk is small and reward can be big. Use the 34AMA as a SAR to your advantage.
Trade as per levels.
Happy Trading !!!
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