Nifty Future breakout from the triangle last week after making the weekly low of 7993 and close the week at the highest level ever for the index. As from chart above one can clearly the breakout. Strong global cues backed up with higher liquidity in Indian market the trend was set after Tuesdays close above 8040 future.
Many stocks saw a huge buying and even short covering which also helped index lead higher. Now going ahead Nifty future will face Intraday hurdle at 8410 and there after the resistance at 8450 – 8500 on the downside the support for the day is at 8300-8220. The trend for nifty has changed from sell on rally’s to buy on dips a healthy correction for 100 points can be used to take long side position.
7990 is the rock bottom for this up leg till this level holds shorts or puts should strictly be avoided by trend traders and dips shall be used to go long. The volume on the buy side is also higher and momentum indicator RSI @ 70.90 still suggest there is more room for bulls to take market even higher from here. MACD has also given positive crossover which also indicates bulls are in total control.
Trading strategy : Next trading week has only 3 trading sessions avoid making big positions – Intraday trader’s if price trades below open in second half in nifty future can short the market with day high stop’s for specific query’s u can write me [email protected]