Rajandran R Follow Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

Why Nifty cant sustain Higher levels next week

May 31, 2009 33 sec read

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As per Weekly Charts. Now the gap between the Nifty Spot Price(4448) and Nifty 5 EMA value(3988) is exactly 450 pts. It is already proved in this blog many times that 5 EMA will act as a gravitational force. If the candle shows major deviation from the 5 EMA line then the candle will tends to move towards the 5 EMA line. And As New month is going to start it is worth watching the gap between the 5 EMA Montly(3571) and Spot Price(4448) and the price difference is more than 800 pts such huge gaps are historically proved to be unsustainable. So taking all these factors into consideration,Even a gap up opening on monday(1st Jun 2009) will be unsustainable regardless of the fundamental news….. What Ever it may be.

All we need at this point of time is a cooling process just a timewise correction without that we cant trend higher further.