NIFTY (4566)

Hi friends, happy to be back on TIS. Since my last post a week ago, Nifty went down 52 points and went up 96 points finally closing 61 points higher for the week giving a 6th straight weekly gains. On friday, another medium term target of 4590 was acheived with Nifty hitting another life time high of 4601 on opening bell and then correcting a bit.

Pivot Point trading levels for 23rd JUL is as under.
S3 S2 S1 PIVOT R1 R2
4499 4527 4546 4574 4593 4621

Pivot Point trading levels for the Week 23rd-27th JUL is as under.
S2 S1 PIVOT R1 R2
4392 4479 4540 4627 4688

Pivot Point trading levels for the Month of JUL is as under.
S1 PIVOT R1 R2 R3
4158 4260 4421 4523 4684

10-DMA 4480
20-DMA 4399
30-DMA 4329

Resistances on the way up are at 4590, 4671. Support is at 4503, 4364.
These are not for any particular day and are valid for MEDIUM TERM.

Now with the next target of 4590 also being acheived, nifty has made an upmove of 501 points so far from 4100 and has yet to give a proper correction. First sign of weakness and a possibility of a good proper correction would come at the break and a close below 4500. This run from 4100 has consumed 28 trading days so far. Nifty has gained 1046 points in last 5 months since march (3555) i.e a near 30% rise.

Last week I mentioned, "can the market go up further from here?? Sure it can, as we all know that market has its own ways and reasons to move." It did exactly that.

Now those who have entered much earlier and if still holding, can ride keeping stoploss of 4500 on a closing basis or else even exit on any rise would be a better proposition. If anyone wanting to enter Nifty at this level, then my answer is a Big Big No !!!! Anyone wanting to short Nifty can do so on every rise, keeping a stoploss of 4600.

No weakness is seen as yet, but the risk-reward ratio at present is certainly not favouring the longs, hence avoid. Incidently at 15615 Sensex hit Yearly R1 and Nifty hit Yearly R1 at 4477