Human emotion is both the source of opportunity in trading and the greatest challenge. Master it and you will succeed. Ignore it t your peril.
Nifty had a roller coaster ride today Rising almost 90 Points than falling -30 Points, Volatility is at its peak. Trend is down but its very difficult to digest a 100 Point rally than a quick fall erasing all its gain. Europe is the center of Trouble for all this volatility in market.
Rumor Mill is playing its Toll on traders
1. BNP Parihas has not been able to get money from USA market
2. Italy talking to China to Buy its Bonds
3. And the latest One Russia will give bailout to Europe.
Now I always believe in trade on levels and News will get discounted in Charts. Morning rally should be attributed to Gap Filling till 5042 Levels and after that Nifty resumed its normal trend which is DOWN.
On Hourly charts resistance at 5050 levels and support coming at 4912 levels. Break of either side will give you 100-150 Points move.
On Daily chart Nifty for second day running took support at 4912. This gives formation of double Bottom which if sustained gives a bullish indication.
Break of the same will make revisit the Old Swing lows of 4796 and 4720. On Upside we can see 4965,5050 and 5096 levels.
We have a data heavy week now as We have Inflation Number coming out on Wednesday which will decide the RBI decision of Hiking or Not Hiking the Interest rates.
If we take the Fibo levels from Low of 4712 to the Swing high of 5169 we get 5037 and 5067 as 50% and 61.8% Fibo levels.
If nifty manages to close above 5067 it negates the bearish trend and we will move up to fill the gap till 5330.
India VIX has jumped till 32 today life High being 36. VIX rising means Fear among traders than we will seee Volatile Moves ahead as Looking at news flow from Europe there are wild swings happening in market. VIX above 36 will lead to panic selling in market. So watch out for VIX during rest of Week.
Levels to Watch
Buy above 4965 TGt 5001,5037,5067
Sell below 4912 Tgt 4885,4839 and 4796
Levels mentioned are SPOT Levels.
I am facing some problem when trying to open charts in new tab they are opening same tab only that i am unable to copy the text like levels from the site.
I have removed as I came to Know that Traders were using the Levels and doing paid services.
To avoid such malpractice i have disables right click on site. You will not be able to copy any levels.