Trading Nifty with Support Levels.

Ravi Prasad asks:
“sir, today nifty broke down 5880 and closed below 5900. Your level of 5880 is it on end of day basis? bit confused because if the level breaks down in intraday and recovers above it then how to trade. ”

My Notes:

This is a sensible question. It should really be asked from all TV anchors who insist on asking for levels. We should ask them: what happens if these levels are repeatedly crossed intraday? You may not get an answer because anchors may not have any idea of real life trading!

But we are traders. We have to ask this question, then find an actionable answer. When I suggest nifty support and resistance areas, these are derived from my analysis of end of day charts. Unless specifically stated, the idea is to wait for the close. At 3:20 PM, if the closing price appears to be very near the zone then I take a ‘sense of the market’ to decide if the zone is holding or breaking.

Questions on this topic are welcome.