Dream rally its nearing to its end. Modi has sworn in as Prime minster so has been profit sworn into portfolios of investors. Now its time to start liquidating 20-30% portfolio and wait back for interesting levels on the downside to buy back the portfolio. Today Modi team was announced officially and they have started working on the first day. Last rally from 5933 was in expectation of Modi winning the battle and as event has been completed i feel it is even discounted in the rally. Now its time to book some profit. Since the rally from 6820, Nifty has not breached 5 Day Exponential till yesterday, but now it was breached twice. That is the sign of weakness.!!!! Indicators on the daily chart have turned bearish and i have noticed a wedge like formation on the top which could be breached tomorrow on the downside. Even 5 EMA is around the same level as downside trendline of wedge at 7309 which is hammering the level in trade. On the other side marked Horizontal line at 7257 has acted as a strong pivot point around which nifty has toggled in last few sessions. Last two sessions low has been around the same level creating a strong base to trigger sell on breach of it. We even have a gap downside which could be filled up at 6871. Weekly charts are somewhat indecisive to take either side while MoM we are seeing a strong upside. Though daily chart showing some weakness we would wait and watch for strong levels of 7150-7500 to be breached to trade on respective side.
Our recommendation: We recommend to book profit on all longs which we initiated around 6800. We would recommend risky traders to short positional below 7257 or buy above 7488 whichever is first. While safe traders are recommended to short below 7150 and go long above 7500. On the dowside we have targes of 6870 and 6500 and on the upside 7680/8031 Consider closing of Nifty to act upon the levels mentioned
*disclaimer: Trade on my idea at your risk and after due diligence. Refer to disclaimer page on website www.chartechnician.com for more. All the words used are just related to article and doesnt intend to hurt anyone personally.