After 26th December 2016 India’s Nifty index is continuously on an upward bias and the index has shown a strong rally of more than 550 points within less than a month. Now last trading day’s move denoted that the uptrend is in a halt. So its time to analyse Nifty next move.
In an upward rally, we try to find out where are the resistances and similarly in a downtrend, we need to analyse the support levels. For immediate trading, we suggest adding to puts to our readers. If you want to know the exact entry point of puts and targets of the same you may join our premium service NIFTY OPTION TIPS where we actually train our subscribers in Nifty Options Trading.
Now watch the image above. This is an Amibroker chart of the Nifty index with Fibonacci retracement levels attached. Here we can see the upmove started at 7893.80 and halted at 8461.05. So the 23.6% retracement level comes at 8327 zones. Though this 23.6% zone can be some support for intraday, I don’t feel it will be stronger enough to avoid the correction and I feel at least Nifty next move will correct to 38.2% retracement zone of 8244 and that will be shorters target.
Analyzing GANN and Fibonacci it is assumed that this 38.2% zone of 8235-8245 should work as the immediate strong support where we can see a bounce back up to 8350-8360. In case this 38.2% zone is also broken with the volume we must see non stop the slide towards next GANN support of 8130. In case 8130 is tested we will once again see a furious bounce back towards 8350-8360.
The overall current trend is down and hence utilize all kind of rallies to short the market. Bulls must remember the support levels I discussed and try to buy only close to my support zones, else you will lose money. To get clear buy-sell levels in Nifty Options interested traders may join us at NIFTY OPTION TIPS.