Nifty has been on a dream run since start of 2017 but Friday’s last 30 mins shook long term traders and many of them squared-off longs in fear .After studying fall on chart , it seems it  was just a speculator’s profit booking as still we havent got any clear pattern of strong reversal on charts.

So as we all could notice on the chart, Nifty is taking strong support on a trend line which is intact since Jan and also travelling to 20 day average (Orange line) since mid-feb. Currently, both 20 SMA and Support line, are at 9120 making it a crucial support for next week. Looking at the option data we are building strong supports from PUTS writing at 9100 and 9000 so any dip in the market is a buy for a positional traders. Now if we apply EW Theory then we will now have a 5th Wave up with minimum tgt of 9350. So the strategy remains buy on dips with SL of 9000 for positional traders.

Leave a Reply

Your email address will not be published. Required fields are marked *