The Beauty of the Hourly 200 MA - Abhijit Phatak

Every low and high for the Nifty or for that matter any stock has some significance. Traders must be wondering what was the signifiance of today's low on Nifty - i.e. 4914.8. The low today was bang on the hourly 200 MA - yes!

The 200 DMA is quite well known even to those who do not follow charts, thanks to our TV channels. However, it is quite interesting to note that the hourly 200 MA (200 HMA) too plays a role in giving support and acting as resistance. For a trader, the thumb rule to be followed is simple - look for shorts just below the 200 HMA and look for longs just above the 200 HMA. Stop loss levels are very tight in such situations. Some hints for trading tomorrow - IDBI, RCOM, Reliance Industries and many more on the long side.

Happy trading.