NIFTY

NIFTY closed at 6276.15, a 1.20 % fall. Even though it is above, 6240, our star level, in case of breaching 6240, one has be cautious as it has been a long time, hovering around this level. Looking at the global scenario, we must take the breach of 6240 seriously and consider the closing of longs in NIFTY and stocks as well.

We can safely assume that the break below 6240, will show us 6170 & then 6100 also in a due course of time. We have a very strong support zone between 5970 & 6000. A close below this level will make bulls handicap for a while & a serious concern will arise. 5800 will be very easy target in that case.

            In short there are various supports we have discussed. If you have longs or you want to trade fresh in NIFTY, please look for the supports mentioned here and the behavior of NIFTY around these levels. Have keen eye on, how much time it takes to breach the level ? What is the behavior after breaking the level ? Whether it returns from the level or going further down towards the next level ? sustaining above 6240 decisively for a bit longer is quite necessary for any long trades.

A little thinking & attention will clear most of the doubts and might save you from unknown danger and keep you on the right side of your trade. Please refer the chart below for better understanding.