Day trading guide by IIFL

On Tuesday, Nifty made a high of 7940, but yet again it proved to be a Great Wall of China as it failed to scale past the supply zone of 7940-7990. Tuesday's high also coincides with the low of 12th June 2015, which suggests that it is a classic case of change of polarity.

Despite index's failure to break past the hurdle, confluences of support between 7770-7800 indicates that it continues to be a buy on dips markets.

Trading within a range is a difficult place to trade and earn money. So traders are advised to initiate longs only when supply zone (7940-7990) is taken out on the upside.