Why 5650 was such and important level to Buy?

NIFTY FUTURE – Review of 6^th Mar

NIFTY FUT –   While the pull back continues an pretty predictable trading day for our readers and traders. Yesterday we discussed and wrote that the immediate hurdle for NIFTY FUT comes at 5830 odd levels . This was also marked as the Bears LAST STAND POINT of the day meaning trading above that level NIFTY FUT will be in control of the BULLS on an intraday basis,
This is exactly what happened once NIFTY FUT in the morning session managed to pull back and trade above the 5830 odd zones.
We had also identified the next target was 5855 , NIFTY FUT managed to pull back and make a high just around that level.
The fact that 5860 is a swing resistance and any pull back till that zone will be resisted made sure that the momentum was not significant today and NIFTY FUT stayed in a small trading range.
NIFTY FUT closed below the crucial swing levels of 5860. This will be a key level to watch out for , what are trading levels if that is cleared? Read our analysis for the next session

 NIFTY FUTURE – 7^th  Mar  Trading Guide
NIFTY FUT –  Today the pull back was significant and important from a perspective that now we have done a complete U turn from the crash that we witnessed on the budget day. Our readers and traders will recall amidst all mayhem we had advised our traders to buy near 5650 levels as a low risk opportunity. Now the reward from those levels stand at 4 times in a period of 3 trading sessions. This is the beauty to trade with clearly defined levels instead of going by news and predictions.

Nevertheless despite this 5860 is the key level to watch out for at this time Either it is a good time to book some gains here and wait for the next leg of market direction to emerge or at max trail your swing positions with tight stops below 5820 odd levels on a closing basis.

On the downside 5820-25 will form as the immediate support zone and in case NIFTY FUT managed to move below it we will again go on to test the 5790 odd trading zones.
At the same time on the upside if now NIFTY FUT manages to break above the 5860 levels that will be deemed as a strong reversal sign for the market.
In case it manages to clear that zone immediate hurdle we will go on to test the 5890 odd trading levels . There is a trading zone congestion at 5890-5910 levels and above that we have a potential to test the major swing levels of 5980 on the upside.

We got a few questions as to how we got the buy level of 5650 so accurately. I think we gave a hint of that already once we posted the weekly charts. More over even before correction happened we have been discussing 5630 as a key swing level for the long term uptrend.
If you go back and look at the weekly charts posted a few sessions back , the fact that we were at a such a critical juncture that it offered  a very high probability low risk pull back trade since we were testing trading retracements levels of more that a year and half. These are the times when as a trader we need to take calculated low risk entries and reversals below.
The level of 5630 odd is a culmination of multiple retracements plus a long term swing accumulation zone. Hence that offered a higher chance of low risk entry.



Swing indicator wise the short term momentum indicator remains positive above 5820 levels. . The mid term momentum indicators are now positive as well and will continue to hold so until NIFTY FUT trades above 5690 zones.



Trading levels for the day:

POWERTRADE BEARS LAST STAND POINT OF THE DAY ----- 5860-65 sustaining above which it will target 5890,5910,5950
POWERTRADE TREND DECIDER OF THE DAY ------- 5825-30
POWERTRADE BULLS LAST STAND POINT OF THE DAY------- 5690-5800
Breakdown and sustaining below POWERTRADE BULLS LAST STAND POINT OF THE DAY will open target for support of ---- 5730,5700