Closing above 100 Day Average after 4 Months

Nifty has given outstanding performance for this series which was not really expected from the bulls. Though its very difficult to pick up the lowest and highest price but still we did get enough part of the rally in our pockets. As i had mentioned in earlier post that Nifty has entered resistance cluster so not getting any confidence trade on either side. So its better to talk about resistance levels and support levels on the daily charts. Today for the first time we closed above 100 day SMA at 7615 after 28th October 2015. Now on the upside we face a small intraday resistance of a gap around 7721 while above that we have resistance of downward sloping resistance line from life high which is around 7850 and 200 day SMA which is at 7905. On the wave theory we have 7700 and 7900 as resistance levels so we should keep that levels in mind while taking positions. Though i would suggest to go stock specific trade next week rather than index.

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