Nifty is Sitting on a Launchpad : Highs May Soon Be Tested

Time Tuned Nifty

Time Tuned Nifty for May to July 2016

I had written my views on Nifty in my last post Nifty 31 March 2016: The Rise May End on 02 Apr 2016 and had perceived that Nifty would make a high on 02-04 Apr, a low on 08 Apr and would then make a high on 22 Apr.  The perceptions were more or less proved to be right with minor aberrations.

Now that 22 Apr is past, a review is necessary.  In my last post, I had also stated that a low may come in mid May and could see 6660 levels, however, this may not happen now at all.  To my surprise, the move in April, breached the falling channel of 9119-6824 and that is a major event.  While a low may come in mid May, but it is unlikely to go that deep and may bounce back from the LTL of the rising channel from 6824.  Till this channel is breached downwards and sustained, trading for an all time high should be the motive of any trader.

As I perceive,  at the time of writing this post ie at 7840 to about 7810 is the level to go long in Nifty.  SL could be below the LTL of the rising channel.   I feel that Nifty is ready for a 1000 points or more on the higher side.  The first halt may happen in the second half of May and the final high could be made in July.  I would not be surprised, if 8100 is touched in Apr expiry, but that would be a very close call that I would avoid.

Taking positions through 8000CE of May expiry should fetch substantial returns.  Caution is advised near 8000, where a covering PE through 7800 strike could be taken.  All the best.