NIFTY AMA

NIFTY AMA	RANGE
5 H – AMA	7845	7855
5 L - AMA	7697	7715
5 AMA	7735	7750
13 AMA	7708	7675
21 AMA	7732	7715
34 AMA	7806	7860
89 AMA	7595	7570
144 AMA	7302	7217

NIFTY BANDS :

SUPPORT :          7570 - 7595
RESISTANCE :     7675 - 7700


What a Flush Out !!!

Markets post the rail budget exhibited volatility and ended the day with a massive cut. This extreme cut came about after break of our mentioned support band at 7735 - 7745. We had mentioned quite clearly in our previous post that we will exit all longs post break of the support band. This is the sheer brilliance of the AMA table. It enabled us to exit at the most opportune moment and book our profits at the right time giving us a great advantage.

Now from the present structure of the AMA table, it is quite clear that Nifty's resistance band has shifted to the 7675 - 7700 zone and there is a critical support zone present in the 7570 - 7595 band. Nifty's low after the massive shakeout was 7595.90 !!! Bang at the support of the 89AMA. Remember, that in this rally Nifty has always bounced off the support of the 89AMA. Thus, a break below this support zone of 7570 - 7595 will be extremely negative and the trend will change to sell on rises. However, if this support band holds then Nifty can once more resume it's uptrend.

Therefore, the ideal thing to do would be to go long with a stop at 7570 and go short if this support breaks.

What the budget has in store we don't know but we can definitely follow price as it will incorporate the outcome in it.



Trade as per levels.

Happy Trading !!!