Saturday, March 26, 2016

Bulls Paused – Nifty View 28 March- 1 Apr

Read on this view to understand how to trade expiry week.
As mentioned in this newsletter last week Nifty paused at resistance of 7720. The small week is over. Nothing much last week. Bulls and bears- both were in holiday mood. World markets traded in narrow range with mixed cues.
So how to trade this expiry week?
Technical Overview: Last week Nifty made a high of 7728 and low of 7617 to close at 7716. It was narrow range of 111 points forming green candle. The resistance at 7720 is still held by Nifty. Hanging man on daily chart near this resistance indicates pressure on the move further up. However the trend is still up. No indications for shorts so far. Longs can be created on dip near 7610-7650 or on a breakout beyond 7760.
Resistance is at 7720-7760 range and 7900-7972 (range) levels. Support is formed near- 7610 and 7435
My View: We are into expiry week. As is the case with most expiry periods- expect markets to trade choppy this week too. On a shorter time frame (hourly), Nifty is making is sideways move. This sideways trading range needs to be broken either side. For next couple of sessions best trade is not trade. Wait for Nifty to give clear indication to create fresh long near support on breakout.
Check the influence areas (supports and resistance on chart below)
Note: Do not consider these as buy or sell recommendations.

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