Monday, June 16, 2014

Nifty, on reaching the gap zone at 7485-98, pauses..

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty Pre-Market View.

FII's are net buying consistently during this month except a day.
BUT prices, in the short term, have closed below two key ST averages.
"Impulsive 3rd wave" seems to be underway with minor corrections, the current one being "ii"nd sub-wave as long as prices stay above the cluster zone of 7361-7433;
The ST direction is "Down" till prices continue to close below these two key averages (21 or 34 hr smas). Aggressively Holding below 7598, Conservatively Holding below 7616, correction continues....
The strategy that has worked consistently well with low risk-high reward ratio is "Initiating a trade at 50%-61.8% retrace with 80% as SL". Adapt to it. 
7485-7498, the gap area & 7448 are two key supports
7589-98 & 7615 are two key resistances today.