#201 Nifty Update: Budget gives "U" turn at the Verge
After long time we are back to our post run but since our last post #Nifty was pretty range bound which didnt gave us a chance to write something new on the blog. Today our 2cd tgt 6131 on #nifty has been achieved on long call initiated on our #200 Nifty Update. Yesterday Nifty gave a ascending triangle breakout on Hourly chart which was coincided with the Ascending triangle breakout on daily chart today which is giving probable target of 6160 on the daily chart. Indicators have turned positive on daily charts while weekly chart indicators are still flat indicating a neutral position. A interesting pattern which i can notice on Weekly chart above is a symmetric triangle which is also known as spiral formation. As name suggest a spiral which travels between two end, same is with this chart of Nifty. A week before it has bounced back from support level and now it may travel to resistance line on the upside which could be around 6240-6280 levels. A gap is also unfilled at the same level of resistance which makes it a much possible tgt on upside. On downside Nifty even bounced back from 50 Weekly SMA (blue line) which made it a strong level with the support line. FM announced a interim budget which was a mixed bad but was consumer friendly which reduced excise on cars and also raised subsidy targets for Fuel and Food. Earnings of frontline stocks have been in-line with the estimated or to say better than estimates. IIP, Inflation and CPI has improved in favor of markets which is supporting Nifty Rally. So now only trigger from fundamental side could be Election.
Our Strategy: We are intact with our previous Long call with next activated tgts of 6211/6263 with trailing SL on Long of 6030