NIFTY AMA

NIFTY AMA	RANGE
5 H – AMA	6644	6680
5 L - AMA	6568	6593
5 AMA	6604	6636
13 AMA	6525	6530
21 AMA	6403	6373
34 AMA	6265	6177
89 AMA	6310	6355
144 AMA	6255	6230

NIFTY BANDS :

SUPPORT :         6370 - 6400
RESISTANCE :   6530 - 6560


Nifty having failed to pick up momentum closed below the 13AMA which has now shot up to the 6525 - 6530 band. We have now closed out our long positions as mentioned earlier and booked gains of nearly 500 points on Nifty !!! A feat achieved through simple system following based on the AMA table :)

Although Nifty has closed below the 13AMA, it still has tomorrow's trading session to clear and break above the 13AMA which is quite unlikely because the 13AMA is in rising mode and will shoot up to around 6550 level by end of tomorrow and Nifty has also formed multiple resistance points in the zone of 6550 - 6560 in the past 3 trading sessions.

This resistance band was also put out earlier for the benefit of our readers as an important weekly channel resistance. Nifty has respected that resistance band for now and closed below the 13AMA. Therefore, it is the first cautionary signal in this rally showing loss of momentum and the reason for booking out longs completely & sitting empty on the sideline till a clear signal is given by the AMA table.

We mentioned earlier that the confirmation of a reversal will be received when Nifty also breaks the 21AMA which has now risen to the 6370 - 6400 zone. We will go SHORT if that breaks. (Although an ideal confirmation should be the break of the upper band of the longer term 89AMA @ 6355)

Nifty may consolidate sideways between the 13AMA & 21AMA before showing it's true intentions. Whether this breakout above muti-year highs is for real or no will be hinted by the AMA table. Right now it's in a neutral zone where rotation is expected between the 13 & 21 AMA.

Stay updated to know the future path for Nifty ahead.


Trade as per levels.

Happy Trading !!!