NIFTY AMA

NIFTY AMA	RANGE
5 H – AMA	6390	6378
5 L - AMA	6325	6311
5 AMA	6338	6320
13 AMA	6240	6222
21 AMA	6176	6108
34 AMA	6242	6253
89 AMA	6073	5980
144 AMA	6032	5960

NIFTY BANDS :

SUPPORT :         6240 - 6260
RESISTANCE :   6380 - 6390


Nifty contrary to a lot of expectations, crushed the bears and rallied on election results. It gapped up above it's multi year resistance @ 6350 and made new life time highs with it's intra high at 6415.

This was completely in tune with our positive bias on the markets which we have been maintaining since the AMA table showed it's long bias from 6000!!! That translates to a whopping 400 points and has captured the entire rally. This is the beauty of following the AMA levels.

With today's intra weakness the 5H-AMA has shot up to the 6380 - 6390 band which will prove and act as a resistance in the short term. Support comes in at the 5L- AMA below which lies the critical support of 34 & 13 AMA which clusters around the 6240 - 6260 zone. Only a break below the 13AMA will indicate a change in gears and trend reversal for the markets, since Nifty found support at the cluster band of 13 & 21 AMA prior to the rally. Till Nifty holds the 13AMA our long bias will continue.

However, there is a glitch in this entire rally and the coveted New High made by the markets. This is because Nifty gapped up above it's multi year resistance which does not make it a valid breakout and only shows the inherent weakness and inability of Nifty to cross it with huge volumes.

However, till the markets hold onto the 13AMA positivity is expected to continue. Enjoy the longs :)


Trade as per levels.

Happy Trading !!!