How to trade Nifty for week starting 02/05/2016

Bullish Possibility: 
First of all I would like to congratulate the person who predicated Nifty expiry between 7800-8000 as Nifty expired at 7847. Now let's focus on next series. As usual let's start with what we discussed last week. In my last post I mentioned that,
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we are above the falling trend channels (brown and sky blue) we are now ready for a decent bull move though we will have multiple resistances in between.
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Now let's explore what is there in Nifty store to offer us for this week. As can be seen from the above  daily chart of Nifty we are still above the brown and sky line. Interestingly instead of such a landslide down move of Nifty on Thursday we are some how still managed to close at or above the blue down trending channel as well. As long as we are above this long term falling trend channel we are safe and above 7972 we could target 8650 in medium term as mentioned in my earlier post.

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As Nifty is out of the falling trend channel lines, can easily target 8650 in near future though may not go in a straight line. But through multiple resistances at different levels. The immediate 1st resistance in this case can be 7900 and then 7972 as can be seen from the stock chart. If we successfully concur this resistance zone then next resistance will come at 8323, 8650 and ultimately all time high 9119 respectively. 

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Bearish Possibility:

As can be seen from the above daily chart we are currently in a consolidation zone, (the greyed area in the chart). Notice that from mid August 2015 i.e just after the giant fall and till date Nifty spent most of the time in this consolidation zone. Trading in this consolidation zone is tricky and may be expensive too as Nifty moves in a small range for most of the time. Hence till we are in this consolidation zone I do not see any straight fall below 7500 sooner and we may spend a lot of time in this consolidation zone  before any significant up or down move. But which ever be the side it will be fast and furious breakout. 

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Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!