Tuesday, March 8, 2016

Hanging Man . . . ! ! !

Hi All,

As mentioned earlier, Nifty is expected to find resistance near 7500-7530 mark and any upside is only possible after sustaining above the said levels.

I know that we booked out our Nifty short at a small profit on Friday and if we have to hold the same we might have gotten higher profits, however the trade was booked as it was a long weekend which can anytime get unpredictable.

On the lower side, 7440 will be a very crucial level and has not become a used support, hence a break below it could see sharp reactions in markets. Below 7440-7395-7420 will be good intraday supports.

On daily charts after a strong run of 3-4 days, Nifty gave a red candle on Friday which looks like the Hanging Man Pattern, may not be a strong reversal but at least suggests a pause in the uptrend and which, as mentioned earlier can be healthy for further upside.

In a nutshell, on the higher side 7520-30 needs to be crossed for further upside till 7580-7610-7650-7680, and on the lower side supports will be near 7440-7415-7395-7340

Risky traders can again take a small risk... Short Nifty @ 7490-95  SL above 7520....

Cheers

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