Nifty is at a make or break zone, making it the most dreaded part for the traders, a lot of action today was near the break point of the fall from 6339 to 5690, however the level was not tested today , but the chances of breaking the same could not be ruled out.
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| BUZZINGNIFTY: TRIANGLE FORMATION |
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A symetrical triangle in nifty in 30 min time frame, a break in either direction would give around 65 points move.
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| BUZZING NIFTY: MAKE OR BREAK POINT |
In the second chart we can see, the important price zone which could decide the course of nifty in short to medium term, the action today was inside this zone, a close beyond this channel will help take a trade in the direction of the break.
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| BUZZING NIFTY: SELL IN MACD/ TEST OF 200 DMA |
Although the bulls managed a close above 200DMA, but most of the price action today was below this all important moving average, as long as this is protected the bulls can hope of some recovery, MACD a very reliable indicator turned down and gave a sell signal , a close below 200 DMA which is currently around 5733 will favor the bears.
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| BUZZING NIFTY: BEARISH FLAG |
The hope for the Bears is the formation of a bearish Flag in the hourly time frame, price action below 5710 would only attract more selling, the target of this formation is roughly around 175 points.
Till the range is not broken out , trade light and book smaller profits, a sell around 5778/ 5805 and buy near 5710/5690 with small stop-loss ( not more then 10-15 points)would be a good trade till the direction of nifty is not clear.
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Indian shares are trading at a price-to-earnings ratio of 19.85 over the next 12 months, compared with their five-year historic average of 17.8, according to Thomson Reuters data.capitalstars
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