Nifty : A Game of Support & Resistance
Since Feb 22nd 2012, Nifty has been moving upwards on every support and downwards on every resistance level. Hence, giving a golden opportunity to the traders, to create buy and sell positions at every important level. But at the same time creating uncertainty, by giving minor gains / loss closing on weekly basis.
The current level of support is at 4940, indicating a move up towards 4980. However, a strong close or a gap up opening above 4980 will confirm its next levels of 5100-5150. At the same time if the bears come into action to push the market down and breaches the current support, we can see nifty trading at around 4850.
We recommend traders to book timely profits in such market conditions, by doing a rational trade.
Since Feb 22nd 2012, Nifty has been moving upwards on every support and downwards on every resistance level. Hence, giving a golden opportunity to the traders, to create buy and sell positions at every important level. But at the same time creating uncertainty, by giving minor gains / loss closing on weekly basis.
The current level of support is at 4940, indicating a move up towards 4980. However, a strong close or a gap up opening above 4980 will confirm its next levels of 5100-5150. At the same time if the bears come into action to push the market down and breaches the current support, we can see nifty trading at around 4850.
We recommend traders to book timely profits in such market conditions, by doing a rational trade.
Nifty moved as mentioned.
ReplyDeleteOn 29th May 2012, Nifty made a high of 5011 but could not sustain the up move and closed at 4980. An important level mentioned in the above post.
Next trading day, made a gap down opening and pushing the Nifty to 4825. Quite near to the target mentioned in our post.
Hence, moving as expected.