Traders got their pockets Fattier this expiry after a long time but this MAY NOT be end. Budget to decided whether “Traders pocket would get more Fatty”! . I did expect Nifty to touch this high two weeks back at my post: “Bottom’s up for Short term trader” where tgts were 8445/8563/8712 and we are just left with the last one. Such a fast rally now could even activate more high levels if the budget comes in favor of common men.
Now Lets talk Technically! As had been mentioning since last few post on Nifty, 8720 could be crucial level on weekly basis. That should be stop loss for short term traders who might have carried forward shorts. But for long traders party would continue above 8720. Indicators have totally turned positive but as per Elliot wave 8720 could still be a small resistance so that level should be played with caution! As we i have indicated with Green Lines, Nifty has given a probable Inverted H&S pattern and its still intact as stop loss which is usually at right shoulder low is still intact which is at 7800. Surprisingly target is at 9800 which is too juicy to trade with a small stop loss from current level but remember 8720 is cautious level. Though am not confident at fundamental side but technically we have few chances for a rally. We will get more confident if we close above 8720 but remember 100 day SMA at 8445 should act as a stop loss for all long trades.
Strategy for Traders: Stay with longs with final target at 8720 with trailing SL of 8445
Strategy for Investors: Hold 8500 PE as recommended before until next post!