NIFTY AMA

NIFTY AMA	RANGE
5 H – AMA	7740	7738
5 L - AMA	7521	7520
5 AMA	7578	7570
13 AMA	7678	7680
21 AMA	7699	7679
34 AMA	7793	7847
89 AMA	7625	7611
144 AMA	7327	7240

NIFTY BANDS :

SUPPORT :         7520 - 7550
RESISTANCE :    7620 - 7625


Nifty swung wildly in a 250 point range from 7480 to 7730 and finally closed the day lower in the RED !!

We mentioned very clearly yesterday that there will be wild and volatile 2 way moves but where Nifty closes is more important and if it wants to continue with the bull case then it needs to close above the 89AMA which was our line in the sand.

However, with today's close in the red Nifty has closed below the 89AMA and also recorded it's highest turnover ever. These are not good signs and it clearly indicates that the tables have turned and the market has now gone into a sell on rise mode. Unless, Nifty does something dramatic and breaks past the 89AMA convincingly we will continue to have a sell on rise stance.

As one can see from the AMA table, there is mild support now near the 7520 zone. Therefore, one may expect Nifty to bounce from these levels. But there is strong overhead resistance right from 7620 till 7680. So any bounce would present a shorting opportunity. Keep in mind that the 89AMA is in rising mode and will rise with each passing session. Sell as close as possible to the resistance band to minimise risk.

On an optimistic note one can still observe Nifty's behaviour and the nature of bounce tomorrow. If Nifty is able to break and sustain above the 89AMA then bull hopes might still be salvaged. Important weekly close tomorrow coupled with Infy results.

Be Alert.


Trade as per levels.

Happy Trading !!!