Technical analysis on Nifty

Nifty as on 17 Apr’13 – 5688.70          Bank Nifty as on 17 Apr’13 – 11981.05

nifty as on 17 Apr'13 - 5688.70

Today Nifty closed with no price change, after prior session’s sharp rally. May be market was anticipating more. In the prior session Nifty managed to move above its 200-day EMA, but in last session (17/04/2013) it faced resistance from its 50-day EMA, and turned lower after making a high of 5699.25. For this there could be multiple factors coming into the picture, one might be heavy profit booking near 5700 level; another could be option writing and so on so forth.

I sense for time being Nifty has limited upside from current level may be here Nifty may consolidate further before moving higher again.

On the contrary, Bank Nifty looks bullish to me, but keeping above fact in consideration, I believe it is advisable to go stock specific in banking sector than going long on Bank Nifty alone.

(Please note, in a medium term perspective, I expect Nifty to move higher. For time being, in shorter term, we can play the pullbacks.)

Trading Strategy :-

If you are a short term trader and long on Nifty than it is time to book profit. If tomorrow i.e. 18/04/2013, Nifty opens lower below today’s close than buy Puts with stop loss of 5710 on spot Nifty.

Bank Nifty, book partial profit as I have already recommended on going long near 11410. (Please read)

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