Saturday, 30 April 2016

Big Picture for Nifty Next Week

On this weekend I am trying to make an assessment of what the Big Picture is for the Nifty.  First is the daily chart of Nifty spot,

It seems prices have been in uptrend, but close to the good resistance area 7970-90. It is the highest level of last six months.  In last week whenever the prices came there they got rejected.

Now the chart to assess what the prices have been doing for last few weeks,

It appears very clear from the chart that Nifty has been trading in the range as marked of around 200 points. Now as long as prices remain in this range, the two range extremes will play a significant role and we can trade these extremes like DPs intraday. At some point in time successful breakout will happen and once that happens we can trade that too intraday.  But till that happens, it will be beneficial for us to fade the moves at the extremes.