Nifty View

Last week Nifty saw sharp rally from sub 4700 levels to 5050 level posting gain of approximately 400 points. This rally was triggered on the news of CRR cut by Chinese govt., which would increase the liquidity in market. This was good enough for bulls to buy in oversold market to give relief rally. This sharp pull back has confirmed that very short term trend is up but in medium term Nifty still remains in downtrend.

Now the big question for the traders is, Is This Rally a Short Selling Opportunity for traders or going long in Nifty on dips will be better strategy.
After such strong rally possibility of dip or consolidation cannot be ruled out. As the short term trend remains up Intra Day traders can look for buying specific stocks on dips with strict stop loss. Short term traders are advised to wait patiently for Nifty to take next possible direction.

Today’s trading day was one of the best example of volatile market. Nifty opens marginally down at 4800 made a low of 4756 then rallies all the way to 4860 followed by sharp sell off taking Nifty down towards 4775 then rallies finally closing at 4844. Today's trading day would be the nightmare for trend following intra day traders. We continue with our advise to traders to buy Nifty on dips with stoploss of 4700.

After sharp fall in recent days, Nifty seems to be consolidating in small range. It is normal behaviour of Nifty, after expansion it goes in cycle of contraction which means Nifty may consolidate in a trading range within next few days. Trading in narrow ranges is very painful for traders as stock trades choppy within range and prices reverse from resistance and support. Traders are advised to buy Nifty near its support level i.e 4700 with strict stop loss.
Resistance For Nifty Is Seen At 4875- 4900
Support For The Nifty Is At 4700

On the back of positive global cues Nifty opens strong and kept moving throughout the day. Today's move indicates short term pain might be over and Nifty might continue to give relief rally. Traders are advised to buy Nifty on dips. In past few days we have seen Nifty takes support around 4700 on closing basis. therefore we advise traders to take long position with stop loss of 4700. Traders can look for stocks in cement space like Ambuja Cement and Grasim as they look good on technical chart.

After weak opening Nifty finds support around yesterday's low i.e 4630 where short covering was seen resulting in 50 point gain for Nifty. Pullback in last hour of trading indicates that short term pain might be coming to an end. Minor resistance for the Nifty is seen at 4780, close above 4780 could trigger relief rally. We advise intra day traders to take long positions in Nifty with strict stop loss. Short term traders are advised to book partial profit in their short positions and wait patiently before initiating fresh short positions.