The Nifty pretty much Mirrored the US markets moves this past week. Nifty has formed a long legged Doji on the weekly charts which basically signals indecision among the Bulls and the Bears. And quite rightly so too. I think a lot would depend on how the US market plays out the QE tapering story and the possible effects of the taper. The Fed is down to a $65 billion buying program now.
It won’t be wrong to say that the Bears are waiting for a decent pull back to get back into action. 5940 – 5950 is a level to watch out for as I mentioned in my last post. The last week saw buying strength emerge at these levels. Bulls look to be holding this level for the time being at least. I for one have not traded Nifty at all the past week. I would like to get some strong upside or downside to get in the move. As usual I am waiting on the sidelines with loads of patience and discipline.
On the upside a close above 6200 would give the Bulls enough momentum to strike 6300+. I would imagine some strong global cues are needed for that to happen.
Nifty trading levels for the next week are as follows
Buy Above 6025 Tgt 1 – 6118, Tgt 2 – 6172, Tgt 3 – 6264
Sell Below 6025 Tgt 1 – 5970, Tgt 2 – 5880, Tgt 3 – 5825
Note: All levels are for Nifty Spot. Kindly adjust the same for Futures.
Very Important – DO NOT TRADE WITHOUT STOP LOSS. Use sound Money Management with your Trading Plan and do not over leverage vis-a-vis your trading equity.
Have a Profitable Trading week ahead!
To your Boring Success!!!