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.
Categories: Trading Strategy