Trading Strategy - S&P Cnx Nifty(Spot) for the week Ahead
On Hourly Charts Nifty is trading in a channel with lower support at 5025-35 levels and facing resistance at 5120-40 levels.
It is forming a contracting triangle, which gives indication of either breakdown or breakout is in near future.
A range of 5016-35 is very good support for market and each time market corrects this range comes on rescue on downside and Nifty bounces.
Currently we are trading in sideways market with 5011-5169.
Break on any of the levels will bring another fast and furious move of 158 Points(5169-5011) in next 2 weeks.
5011-158 = 4842(This will lead to gap filling on downside Gap of 4861-27 is still not filled)
5169+158= 5327 ( This will lead the Gap filling of 5230-5320 range)
Volumes are higher on rising day and Lower on Falling day
What Does it Indicates ?
It indicates the internal strength of market is bullish and is more biased on long side and Every dip is getting bought.
But any uncertain events like EU not coming to any conclusion will lead to break on downside with biggish volumes.
Simple Rule:Till Market do not closes below 50 DMA its buy on dips. Every fall will be bought
On Weekly charts we are still in formation of Higher High and Higher Low formation with Biggest resistance at 5169.
Again on Weekly charts the Volumes are much less as compared to previous week.
Nifty is down 1.6% on WoW basis.
Weekly trendline indicating the weekly resistance at 5169. Market was unable to break this range in last 3 attempts.
Weekly support comes at 5011-4998 range.
Will it be 5th Time lucky?
Next week first 2 days will resolve this mystery.
Last Week was a Bad Luck to bulls as so near the range they were unable to close above 5169.
Exciting and thrilling week ahead of us.
Its been 11 Weeks ahead we are trading in a range bound market with huge trading range of 450 points.
5169 is monthly high of September month and 5160 is Monthly high of October month.
Above, its a fresh breakout on cards.
If nifty move above 5200 Levels it will lead to Huge Unwinding of calls and explosive move of 30-50 points in matter of min will happen.
5000 PE will act as support on downside.
Nifty trading Levels:
Trend Deciding Level:5169
Resistance:5198,5230,5278 and 5320
Support:5035,4998,4975,4924 and 4896
Note : I Suggest you to read our Nifty Futures Strategy also.
The Same will be updated in the morning.
Stock has been trading in a range of 420-464 for more than a month,
so one can trade this range for quick gains and if,
Stock is able to give breakout above 464 with good volume then ?
it could see another 10% upside.