A Hanging Man . . .

Hi All,

As expected, yesterday, Nifty took resistance near 7720-30, the resistance based on falling window pattern and corrected by almost 1% from Monday’s high and took a pause in the upmove after a hat trick of positive closes (3 days in a row).

However, late buying from bulls helped Nifty to bounce back and close in positive territory by 10 points, though it did not close above the falling window level of 7720-25, the bounce can be treated as a good sign.

Now, due to today’s price action the daily chart shows not necessarily a bearish but of course an alarming pattern, Hanging Man, hence going forward, yesterday’s low near 7740 will be very crucial to watch out for, as a breath of it can mean upper hand for bears.

On the upside resistances will be intact near 7750-7780-7800....

Cheers

A Window is open . . .

Hi All,

Nifty rallied smartly yesterday and hit a century. It also achieved the Cup and Handle conservative target of 7680-7700 as mentioned....

Nifty is now trading near a Falling window (Gap) on daily charts and a close above 7725 will be inevitable for a further upmove. Aggressive traders can think taking a short trade if and only if something is visible on intraday charts. I will update the same and put up a call.

The bias for markets continue to be positive, however, Nifty is trading near a crucial resistance area of 7720-7760, and a pause in the rally can be expected.

Levels to watch out for –

Supports – 7675-7655-7615-7590

Resistances – 7725-7750-7780

Cheers ! ! !

Bulls are sipping a cup of Coffee

Hi All,

As Nifty did not break 7400 levels which would have confirmed the bearish pattern of Double Top and surpassed the resistance area of 7580-7600 in a style.

Now, on intraday charts Nifty is making a Cup and Handle Pattern (Please find below the chart for illustration) which can have targets near 7680-7700 on a conservative side and 7750-7780 on the aggressive side.

However, Nifty will have to surpass a minor resistance near 7630-7650 levels.

The bias for the markets will remain positive until we get to see any negative sign on charts.

Levels to watch out of –

Supports – 7570-7510-7475-7400

Resistances – 7630-7650-7680-7710-7750-7780

We will wait for some time before initiating any trade....

Cheers!!!