Those who are following me know that for some time I am in sideline from trading Nifty as my last upside target of 9180 got hit. You can read this post: Nifty Trend Analysis: My Nifty Target 9180 Hits, Now What Is Nifty View? Now the difference between a professional trader and a novice is that a novice always expected more. I know people are following the TV stars, they are talking of 10,000 as a Nifty target for April month OR soon. People are buying Nifty like crazy. But trading is not that easy. I will show you a simple method of calculating a Nifty target for April expiry.
Why will Nifty not move another 500 points in April?
Because once a major make or break target gets either it starts of an opposite trend OR it starts a phase of consolidation. In our case, we are not seeing any downtrend yet. So the trend is UP and we will see consolidation. Check the image below:
It is clearly understood that Nifty index is rangebound between 9220-8980 level. So the range is rough of 240 points. Now, what will be a Nifty target for April expiry? There are 2 possibilities.
Possibility No. 1) Either Nifty continues to trade in this range 9220-8980. Do not consider minor breaks. The range may extend by few 20-30 points on either side on an intraday basis. An only clear close above range with volume will be considered as a range break.
Possibility No 2) Nifty breaks the range. Either side range break and close with volume a trading opportunity. Upside range break will give target 9220+240 = 9460 and downside range break will give target 8980-240 = 8740. For the formula of upside target is RANGE HIGH + RANGE and formula of downside target is RANGE LOW – RANGE. It’s as easy to calculate the Nifty target for April month. Intraday traders can use the CAMARILLA CALCULATOR for finding Nifty intraday targets.
Indrajit is a professional blogger and trading system developer. Amibroker expert, WordPress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.