Thursday, September 11, 2008

What lies beyond the trading range

Readers must have had enough of the talk about a trading range in the Nifty. The Index has been inside this range for over seven weeks. The boundaries are between 4250 and 4650. This means, support comes in around 4250, and, resistance at 4650. Remember that support and resistance numbers are just indicative of the probable zones of support and resistance. If the Nifty comes close to 4250 (It already has done so), then consolidates, and finally rallies, we will say that support around 4250 has held.
Will support hold ? There is no way we can asnwer this question now. The trading range has been in place, and every time prices come near 4250, they bounce back. This should happen again. Then again, there is always a point at which the range will end, with either a breakdown or a breakout. Maybe, the Nifty is ready for a breakdown. Maybe not.
The only way to find out is to let the market either break down, or find support. If the Nifty breaks down, there is more downside, probably all the way to 3800. if the Nifty finds support, there should be some kind of a rally, at least near 4500. So, either event should be tradeable.

3 comments:

Suja Rouf said...

My judgement is Nifty will be around 3492 and 4210 by 23rd October 2008. Mr. Sukhani is very much correct that probably nifty will break down

Anant said...

Could Mr. Suja educate us how he has derived date and trading levels? Is it with the help of technical charts or by some other method. I hope even Mr. Sudarshan must be wondering with this prediction.

With warm regards,

Anant

satheesha_kn said...

Sir
Please tell me how to identify derived dates and trading levels of future stock, as told by Suja rouf.
faithfully
K.N.Satheesha.