ANALYSIS FOR SEPT 18

Nifty had a Huge run up with two gap ups. 75% of the Longs taken ( from sept 6th 5245NF) were booked out on Friday and Yesterday (5630NF).  Continuing rest of the Longs with Stoploss 5525 EOD - based on Day HEMA.

The Channel Resistance of the weekly chart arrives to 5700-5710 levels - The Previous High formed before 5629 - on 26 July 2011.

DAY Harmonic ABCD pattern:

Alt-2 ABCD pattern

AB - 5032 - 5449
C-  5215 - approx 50% retr of AB
Holding C Proj for D:
113% - 5479
127% - 5512
141.4% - 5545
161.8% - 5593
200% - 5683
   The 200% retr which is the last target for this pattern is yet to achieve. A pull Back might be affected upto the 5530NS levles - the gap up area - corresponding to the Day HEMA and a Bounce from those levels would take Nifty to 5685-5700 levels - Completing the Pattern. Aggressive Longs can be taken at this juncture between 5550 - 5530NS with Strict StopLoss at Close below 5520NS.

Shorts might be attempted either Close below 5530NS Close below Day HEMA or near 5700 NS levels - based on weekly channel resistance.

SYNOPSIS:

HOLD LONGS WITH SL 5520NS
TAKE LONGS AT 5530-25 NS LEVELS WITH SL 5520NS

CHECK LIST-DAY
CLOSE	5610	HI EMA	5526
PIVOT	5616	LOW EMA	5474
prev HI	5652	50 Hr MA	5438
prev LOW	5585	100 Hr MA	5351
5EMA	5505	5 SMA	5489
10EMA	5437	10 DMA	5389
13EMA	5414	20 DMA	5366