Bulls's day out . . ! ! !

Hi Everyone...

As expected Nifty took support near 7400 mark as mentioned earlier and bounced back. After breaching the 7500 resistance Nifty rallied further by almost 1% and closed at 7563.

As it has crossed the 7500 resistance the next pit stop now is near 7610-7640.... and above that 7720-7740 remains very crucial as the Nifty 7450 Straddle Break Even Point (on the first day of the new expiry series yesterday) is also at the same level.

Currently the short term bias is continue to be positive (was changed from bearish to bullish on 22^nd Jan after the Last engulfing pattern) with targets near 7610-7640-7730, and I think the midterm bias will also turn bullish above 7730-40 levels.

Traders are advised to still be cautious as India Vix (Volatility Index is still on the higher side @ 17.24% and trading near a daily support.

Cheers

Hrishi

Gap down and covered.... ! ! !

Hi All,

As per yesterday's post, Nifty opened down by around 30-35 points and then recovered sharply.

Nifty currently trades around 7500, up by almost a percentage point. and a key resistance near 7500.

all the levels are same as per yesterday's post (Just scroll down the Blog).... the bias is positive above the resistances...

Cheers....

Gap down tomorrow. . .

Got this informative forward which makes sense

So even if markets break 7400 we have to discount it on these factors...

Need not panic as lot of people saying the same thing which usually doesn't work. Or it may open down and then cover up during the day

Observation

Nifty 7450 Straddle Break even point I.e. BEP is 7180 and 7720. As per earlier posts 7730 is a key resistance technically. So with confluence of indicators suggesting 7720..7740 levels.. it becomes very crucial
Tomorrow ICICI and Maruti will go down by 5-10%

The forward...

ICICI weight in nifty 5.8%..
Maruti weight in nifty 1.9%..
Total 7.7%..
Now 7.7% of 7400 is 570 points..
A fall of 7.5% of 570 points is 43 points..

This is fall likely due to these 2 counters tomorrow
Bharti Also has 2% weightage ..
A fall of 4% there is also likely..
Reliance, pharma and  software may cushion the fall

So we are likely to open gap down below 7400

Cheers

All eyes on Expiry ! ! !

Hi All,

After facing resistance near 7500, Nifty fell by almost 1% and found support near the first zone mentioned, i.e. 7420 and bounced back sharply by around 60 points, however was not able to cross 7500 mark.

Today, markets can witness a bit of extra volatility, on account of F&O expiry, hence traders are advised to trade with strict stop losses.

Though the bias for Nifty is positive due to candlestick patterns on daily and weekly charts, for any meaning full upside Nifty has to surpass 7500 mark.

Levels to watch out for –

Resistance – 7490-7510-7550-7610-7640

Supports – 7415-7390-7320-7270-7240...

Cheers!

Hrishi

Wait & Watch . . .! ! !

Hi All,

As expected Nifty faced a resistance near 7470-7500 zone and came down marginally to around 7420 levels.

Even today in spite of strong SGX Nifty (up by 40 points odd) Nifty opened gapped up but gave away all its gains and currently trading flat, up by just 1 point.

Due to couple of candlestick patterns on the daily and weekly charts, the bias is positive for the markets, but advisably Nifty should cross and sustain 7500 mark.

Levels to watch out for –

Resistance – 7490-7510-7550-7610-7640

Supports – 7415-7390-7320-7270-7240...

Traders are advised to trade cautiously on account of F&O expiry tomorrow. India Vix also is trading near a support zone, and if held can bounce back sharply, which is a negative sign for Nifty...

Cheers

Hammer - A Sigh of Relief for Bulls ! ! !

Hi All,

Thanks to the Last Engulf Pattern on daily charts and Morning star pattern on hourly charts, Nifty has already bounced back by almost 3-3.5%.

It’s now trading near its resistance zone of 7470-7500, above which Nifty can go up till 7550-7610...

Finally, there is good news for the bulls that on Weekly charts Nifty has created a Hammer Pattern, and prices have already went higher than last week’s highest price which is a good sign.

However, playing safe, it is advisable to wait for a cross of 7610 mark before calling it a confirm short term bottom. Above 7610 mark Nifty can then scale new highs of 7700+ and after closing above 7730 (a gap on daily charts) one can even call for a medium term bottom for Nifty as well.

In a nutshell, Nifty currently trading near  crucial zone 7470-7500, and after surpassing that bulls should pray for a successful breach of 7610 level.

Supports on the lower side are 7440-7390-7320-7370-7340...

Cheers