Monday 18 March 2013

NIFTY a range bound session? What’slies ahead? What are the levels to watch out before the RBI meeting?


NIFTY FUTURE- Review of 18th Mar
NIFTY FUT –  had a huge gap down opening , making us  interpret the levels in a different way. Let us review how we trade such gap ups or gap downs if at all.
We mentioned that the BULLS LAST stand point as 5860 and targets below it as 5825 levels. Now once we opened gap down the same BULLS LAST STAND point will act as a resistance now instead of a support in normal situations.
This is where markets exactly made a high and failed to take that level out on multiple occasions.
Similarly on the downside NIFTY FUT made a low just above the target zone of 5825 and failing to break that on either side.
This is the kind of day you see when strong intraday weakness meets strong swing supports. Best thing to is to wait for markets to break out of this zone and initiate a break out or a break down trade.
That’s where again the levels come handy. Markets all through the day precisely traded in between the trading levels and failed to clear it on either side. This was a clear sign of a range bound day in progress. We managed to stay away on Nifty trades.
Now that NIFTY FUT has broken through one zone and closed at another crucial trend decider zone where can it head to over the next few sessions? Read our analysis on near term support and resistance levels and a few trade combinations

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NIFTY FUTURE – 19th  Mar  Trading Guide
NIFTY FUT  closed a shade below our swing support levels of 5855-60 and now that will form as the immediate hurdle.  Trading above that zone NIFTY FUT can again go up to crawl and test the 5890 zones, This was pretty easily taken out the last time it was tested in a pull back. Will it be the same this time around we have to watch out for the coming sessions.But given the close and the movement we had the chance of a downside move is more accentuated.
At the same time we have strong swing support levels and in the downside zones, On the downside 5830 will form as an immediate support and a breach of that can test 5800 levels. All over again. Expect a mayhem if that level is breached conclusively.
This also provide a very low risk pull back opportunity for traders . we would want want to take the low risk swing pull backs in dips will stops and reversals below 5800, as the risk reward ratio is favorable at this stage
Also the fact that we had a small daily candle makes the trading decision relatively easier  as it is prudent to stay neutral in this zone and try and trade a pull back on the break of this trading range on either side.


Swing indicator wise the short term momentum indicator are now back to negative and will hold so until NIFTY FUT trades below 5865 The mid term momentum indicator are also negative now and will hold so until NIFTY FUT trades below 5905 levels

Trading levels for the day:

POWERTRADE BEARS LAST STAND POINT OF THE DAY ----- 5860-65  sustaining above which it will target 5890,5920
POWERTRADE TREND DECIDER OF THE DAY ------- 5825-30
POWERTRADE BULLS LAST STAND POINT OF THE DAY------- 5800-05
Breakdown and sustaining below POWERTRADE BULLS LAST STAND POINT OF THE DAY will open target for support of ---- 5760,5735

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