Trading Nifty 05-08-11

Nifty has been trading in the Downtrend as expected in line with Weekend analysis Click Here  and subsequent updates given below.

Apprx. 5300 levels were expected to reach fast , in day before yesterday's update.

The four days trading of the week has been in a LH - LL trend with lower close also and this with increasing F&O volume. 

The important aspect to manage trade is now the Profit booking part . Our system is down from 5635 levels . We now should take some /all profits home this weekend.

Most likely Targets may be between 5305-5290 level. (these are marked by Elliott wave analysis and Lower Bollinger Band on Weekly chart.) .

Be careful  in case of upmove in first half if opens and sustains above today's close , Initial resistance may come at 5365 level . Book profits then trading the 5 min chart.

One may get lower targets near 5250 level also if trades below 5290. May be tmrw may be later. (we have an insight from yesterday of Longs formed in large quantity above 5400 levels ,what will they do if trades below 5300 for some time . Panic of weaker hands in them ???)

Targets for profit booking may also be done by trading 5 min chart and seeing bullish cross of emas in oversold zone or Stochs with PSAR, Pivot points etc...

Having said that I dont see a Bottom / Reversal still in place. Yesterday's close level of 5405 is today's breakdown level. It becomes important pivot and any upmove will sustain only above it.  (We will get short covering rally above it now ), so Trend traders may keep it as SAR after part booking at above targets and ride further.

The Trendline mentioned and followed in updates to manage trade, stands unbroken.

Remember , We dont have control over Markets but only on our actions to manage the trade , also we will never get the Top or Bottom so taking out most of a Trending move is the next best thing.