NIFTY : What Next, Ahead of Budget 2017?

posted by Paritosh on Sat Jan 28, 2017 12:03 pm


Nifty gave a close at 8641 on 27/1/2017.

Now, going through 9 months daily historical chart following things noted:

1) Sharp W-Shaped move from 9000-7900(-ve); 7900-8300(+ve); 8300-7900(-ve) and now 7900-8641(+ve).
2) Two gaps created while moving from 7900-8641 (present last leg of W-Shape)
3) 8690-8720 major resistance zone.
4) Supporting parameters still in comfortable zone.

Question arises:

1) Will the gaps be filled before completing the W-Shape move? OR
2) Will the resistance zone of 8690-8720 broken first, in next week of budget?
3) Will the parameters move out of comfortable zone at around 8700?


After analyzing above things my opinion is as follows:
1) Look to book profits in nifty around 8700 levels.
2) Go short around 8700 with strict stoploss at 8760 levels for downward target of 8480 and 8290
3) Go long above 8760 for completing W-Shape. 

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