Thursday, October 20, 2011

Nifty Trading Levels for 20-Oct-2011

Hi,
I could not provide trading levels yesterday, but I hope you could catch some good move the day before (i.e on Tuesday).  I had advised to go short below  5059 for target 5018. Nifty touched high of 5056 and low of 5011 before closing at 5037. Nifty achieved all our targets trading the short side of the market right from 5045 to 5018. So that was a good 27 pts move in our favor.

Nifty is fast approaching our resistance zone of 5160-5200, so expect some pause here and trade with caution. If you are an experienced trader and are able to catch the bulls weakness then trade short. If you see the bears are losing their grip in the resistance zone and the bulls are showing all signs of breakout then go long. But keep a price level ready in your mind and then trade.

I have tried to arrive at the price level so that it becomes easier to judge whether to go long/short.

Nifty price levels for today's trading are:

Top reversal region      : 5150-5175
Typical Price: 5130
Bottom reversal region : 5115-5090  

How to trade?
Monitor price closely and see which side is getting weaker and trade against it.

Trading the Top Reversal region:
1. if Nifty reaches in the Top reversal region, but is unable to trade above 5175, that means the bulls are becoming weak. look for shorting the market once it falls below 5150, Target will be 5130 & 5115, Stop Loss (SL) will be 5175.

2. if Nifty reaches in the Top reversal region, but is unable to trade below 5150, that means the bears are becoming weak. look for going long the market once it crosses 5175, Target will be 5190 & 5210, SL will be 5150.


Trading the Bottom Reversal region:
1. if Nifty reaches in the Bottom reversal region, but is unable to trade below 5090, that means the bears are becoming weak. look for going long the market once it cross above 5115, Target will be 5130 & 5150, SL will be 5090..

2. if Nifty reaches in the Bottom reversal region, but is unable to trade above 5115, that means the bulls are becoming weak. look for shorting the market once it falls below 5090, Target will be 5075 & 5055, SL will be 5115.


Have a profitable day.