Medium term Nifty levels and outlook for traders

Nifty has been in quite a long correction after the Modi wave. It is currently at 7928 (Dec 28 2015 closing level). This is a very interesting phase for the Index because for the first time after many months, it is showing a double bottom.

Ideally, a close below 7400-7500 level would make the Nifty healthy and lead to a huge, fast wave up, but the formation of this double bottom needs to be seen very carefully.

Confirmation of this double bottom is quite some time away (8340-8350+). If it crosses, then we are in a huge wave up that could last for many months.

Action: ONLY FOR TRADERS WITH RISK APPETITE
One can take 30% positions now. Watch the upper level and add there. If Nifty crashes to 7500 or below, we will take another look. One can add there. Ideally, according to celebrity traders, it is always better to average in the direction of confirmation. But, since we are only taking 30% positions and expecting a bull move after this bottom, it is alright to add carefully at the lower levels.

Nifty levels for August 19 2015

Important Nifty Index levels for closing session on 19th August 2015

Upper levels - 8535
A break above this level will help the market run

Lower levels - 8490, 8420
Nifty will collapse below these levels

Editor

Nifty levels for May 4 to 8, 2015

Nifty key levels

Supports:

8190
8118

Resistances:

8480
8505