It has been excruciating/frustrating 9 trading sessions to trade with such a dull market and Sideways. Neither Bulls are making significant money nor Bears. The most important aspect of trading is understanding What Market are we trading into.
Are we in Sideways/Trading or trending market. Such judgement will help u in planning your trade well in advance.
Nifty Hourly Charts are trading in small range of 5535-5576 with Hourly Indicators near Oversold Territory.Below 5535 we can see 5497 levels and above 5576 we can again trade near 5610 levels.
As seen from above chart from past 9 trading sessions 5659 on Upper end and 5535 on lower end is the trading range.
Importance of 5535 Level
Today Nifty was not breaking the 5535 levels, As seen from the below chart it gives us the reason why 5535 is so important?
Break of above level can eventually drag Nifty to sub 5400 levels.
Where are we Headed
Today we have given a Breakdown as seen from the Blue line closing below 5550 levels. But will we see the follow up selling we can come to know tomorrow only. FII sold 600 cores in Cash market and RIL also unable to sustain above 884 levels.
Closing and sustaining above 5610 and 5659 is important for Bulls and For Bears close below 5497 and 5450 is important.
Best Strategy to take Positional trade Nifty now is Buy near Support of 5535 Sl 5520 and Sell Near 5650 Sl 5660 till we see a Breakout or Breakdown.
Level for Tomorrow
Buy above 5551 Tgt 5569,5578,5598 and 5615
Sell below 5532 Tgt 5504,5497 and 5477
Levels Mentioned are Spot Levels.
Trade with Levels and a Proper Trading Plan and Stay Disciplined