Niftyday May 27, 2013, Nifty is in making of Head and Shoulder

We discussed in our last post Nifty paid due respect to January High and with the combined effect of 38% retrenchment support, 30 day moving average support it bounced sharply and touch 6100 which happen to Monthly pivot first resistance.

Future expected move
Nifty is in making of Head and Shoulder pattern at top, which is supposed to be bearish sign, this will be invalidated if Nifty closes above 6150 on weekly basis.
No trade zone is 5950 to 5975 so one should book profit if shorted Nifty.
Short Nifty below 6050 which is weekly pivot this is also 23 % retrenchment of move from 5500 to 6200
Remember to book partial profit in zone 6020 to 6030

5900 to 6000 is our new expiry target from last published range of 5850 to 5940

Nifty Expiry Estimate May 31st Series

Nifty come down sharply as we expected. Now it is near 38% retrenchment and withing 100 point gap there are more support exit. January high is there at around 5940, Weekly second support is at around 5889. and 50% retrenchment is around 5850.

Nifty may stay in the range 5850 to 5940 till expiry.

Nifty Week 21st, Starts on May 20th, Look out for 6268 and 6275

Short Nifty at 6265 to 6275 for first target 6120

Last week gain is:     -20 (loss of 20 points)

*Expect small bounce at 6120 till 6140 to 6150, but trend would negative, it will terminated if Nifty stays about 6200

Niftyday Rule#3: Never try to average out losing position
Niftyday Rule#4: Maintain Strict Stop-loss and keep trailing in profitable direction

Nifty Resisted at 6190

Nifty maintained resistance of 6190. Though hit our Stop-loss by a whisker.

Niftyday on May 16, 2013

Niftyday Rule#1: When movement is wild always rely on Pivot Points

Weekly pivot falling on 6171 and it will not be easy task for bulls to breach this line.
Go Short at around 6166

Niftyday Rule#2: Maintain a stop loss of 20 points, and re-enter the market only if condition is favorable in your direction

Nifty outlook for 2nd May 2013

Nifty has formed long doji at top of a bull run also happen to be end of a month. IMI showing weaness other indicators are still bullish. Any close below 5900 in the month of May 2013 would be a setback for Nifty Bulls.