Nifty Update

Nifty Daily.

Nifty taking a breather.

The above chart clearly shows that Nifty is currently taking a breather before defining the next trend. The last two trading sessions have been quite range bound and no clear direction is evident from it.

Trading in stock market should not be done by randomness and should not be irrational. Hence we need to plan our trade. The present situation is a wait & watch game, with two important levels to watch for. Upside level being 6025 while one has to watch for 5930 on the downside. A breakout on either side will decide whether the current upside will continue or not.

If we get an upward breakout then the next target for Nifty will be approx. 6080 and then at 6150. While on the downside the targets will be levels of gaps. However, a look at the intra day charts show that Nifty is heading upwards and the previous high of 6025 can prove to be an important level.

In our previous post we mentioned that Bank Nifty is weak, and that's exactly what happened. Bank Nifty fell down till 12,139 and bounced back from a very important support today giving it's close at 12,340. Importantly in this entire fall, Nifty remained range bound.

Hence prudence says that prevention is better than cure, and one should wait for a breakout above 6025 or below 5930 to enter into a positional trade with Nifty itself defining it's move.


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