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FOLLOW UP RANGEBOUND (CONSOLIDATING) NIFTY FIFTY

On Sunday 2nd Oct mentioned that nifty is consolidating between 4720-5230. Observe the chart below yesterday it made low of  4728.3, today right now it is trading at 4770.75. 

Will it hold 4720 today also? I f it holds and also closes above 4758.85, low made on 29/9/11 possibility of bounce back (up move) increases.

Right now it looks like today it will form inside day, if it happens and time permits may write about inside day.

By the way according to our trading system today we booked profit in short (sell) position initiated on 30/9/11.Booked profit at 4801.95 (profit of 143 points). We just booked profit (exited sell position), not initiated reverse trade as of now. Our system not yet initiated buy (long) signal.  

RANGE BOUND (CONSOLIDATING) NIFTY FIFTY

As mentioned on 5th Sept. our dear nifty is consolidating between 4700-5200 range. To be precise from 4720-5230.

Since 5th Aug. i.e. almost for 2 months nifty is trading within this band of 500 points. So break of this range will give good trading opportunity. Since current technical setup is bearish and there are lot of negative news it will looks like eventually it will breakdown for target of 4200-4400. At the same time always remember that trading is game of probability and it is not prediction so always think of opposite possibility also and if market turns opposite to your trade be ready to book losses and reverse your trade.

At the same time if you can see the above weekly chart 4700 is strong support, it may try to hold 4700.

The above monthly chart shows that if support 1 around 4700 is taken out, the next support (i.e. target will be) 4300-4400.

By the way if you can see the performance link given on right side of blog our improved strategy has given sell signal on Friday 30 Sept.