NIFTY AMA

NIFTY AMA	RANGE
5 H – AMA	6265	6280
5 L - AMA	6205	6220
5 AMA	6213	6233
13 AMA	6290	6308
21 AMA	6270	6257
34 AMA	6290	6291
89 AMA	6340	6401
144 AMA	6185	6108

NIFTY AMA :

SUPPORT :         6100 - 6110
RESISTANCE :   6185 - 6250


Nifty sold off heavily on the back of weak global cues and recorded it's worst fall in over 5 months. However, we had anticipated the fall by reading the signals thrown out by the AMA table much earlier.

We mentioned clearly and several times that the key difference during Nifty's last bounce toward 6350 was that it had broken below the 89AMA and any bounce was to be used to sell into and create short positions. This was further confirmed on break of the 21 & 34 AMA at 6300. Today's fall has given us a neat 200+ points from the recent highs.

The real question now remains whether Nifty can manage to hold onto the crucial 6100 level. Tomorrow being RBI Policy one can expect some wild swings both ways. Therefore, it would be important to see whether Nifty holds onto the 6110 level which is also the lower band of 144AMA on closing basis. Holding the same, a bounce can be expected and breaking below it Nifty can go into free fall mode.

The crucial level on the upside remains the upper band of the 144AMA. Conservative Traders should book out the shorts if Nifty manages to break above the upper 144AMA band decisively and the 21AMA should be the last stop for Aggressive Traders.


Trade as per levels.
Happy Trading !!!