Today, our NP-SAR was 5841. We suggested our readers to partbook NIFTY around 5920-30. So, we got that level to exit. NIFTY corrected to 5838 which was close to NP-SAR and re-buying level of NIFTY.
During strong trending move corrections should be taken as re-entry level and entry point should be NP-SAR +/-5 points with 20 points SL. It is tested that during trending move NIFTY always correct to NP-SAR level which can be treated as re-entry level. If 20 points SL hit, it should be a reversal signal.
Now coming to NIFTY. Today NIFTY formed long legged DOJI. It touched the red line (as discussed yesterday) but could not sustain below it. On daily chart, NIFTY is reaching over bought zone. Stochastic is flat at higher level. No signal from MACD yet. So, NIFTY may remain in over bought zone for sometime more; yet we should remain cautious at higher level. But we suggest to stay long with part book at regular interval and re-entry at NP-SAR level.
Trading above 5945 will give further oxygen to NIFTY for further upmove to 5980(blue line)/6040. On the other hand, trading below 5910 may invite larger correction.
Free call performance: Today free call of IRB was given. It hits target 1 and almost achieved target 2.
Free calls are provided at NIFTY Pulse Page of Face book.
Wish you happy trading !!!
Good work sir!!
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