Position sizing is the part of your trading system that tells you how many shares or contracts to take per trade. Poor position sizing is the reason behind almost every instance of account blowouts. Preservation of capital is the most important concept for those who want to stay in the trading game for the long haul.
First and Most Important Support is 5057 NS,Trading below this will lead to puncture of upside momentum.
Support will come at previous resistance at 5034 and 5016.
5136-5170 resistance is Wall of Resistance for Nifty. Nifty has been trading in the range 5170 on upside and 4720 on downside. It has bounced twice from the range of 4720 made double bottom and Fell from the top at5170 making double top.
We had a rally without correction from 4728 to 5136 ie. 408 points in 6 trading sessions which also involves 3 Gap Up opening whose gaps are still to be filled.
3 Gap up opening comes near an exhaustion gap. Hence if 5136 is not taken out today we can assume Short term top is in place and we can see a correction from now on.
Today Weekly Inflation Data will come at 12 PM IST.
Levels to Trade
Buy above 5094 Tgt 5120,5136,5148 and 5170
Sell below 5057 TGt 5034,5016 and 4997
Yesterday I gave a BUY call@852 and 1 Tgt was 858 RIL made a High of 858 and Retreated closed back to 846.
858-860 is the crucial resistance zone for the Stock Above this range Stock has power to move up till 888-900 Levels in Short term.
Buy above 849 Tgt 858,864 and 871
Sell below 842 TGt 838,833 and 826
Below 175 the pattern gets active
Sell below 175 Tgt 171.6,168 and 164