Update - 29th Jan 10.10 PM
Risky traders book partial profits near 12140, longs initiated near 12060
Hi All,
As posted in the last update, after the Bullish Counter attack pattern on daily charts, Nifty rallied by almost 5% and created a life time high near 12430 levels, however, Nifty is very volatile and has already come down by around 3% to trade near sub 12100 levels now.
Going forward, charts suggest that, Nifty is trading right into the support area of 11980-12090 (Upward gap from 12140-12187 and other important levels including Supertrend near 11980) and a couple of days back has also given a Bullish Harami Pattern, which is advantage bulls. Also, on hourly charts, it has given a positive RSI divergence, which would be confirmed above 12170-80 levels.
Regarding the event of Budget, it is very well seen in the past that for the known events, markets do follow "Buy the Rumour Sell the Fact" phenomenon, hence, Nifty is likely to reverse the immediate preceding price action post budget (Meaning, if Nifty rally right now there should be correction later or if it falls right now after breaking the supports, it should ideally pull back post the event)
Plan of action - By sticking to "Price is the king analogy", based on charts, I would suggest, any longs are advisable above 12140-70 on a conservative side, with stop loss below the recent lows and target of the all time high... Aggressive traders can, buy on dips with stops below the mentioned supports. Traders can think of sell on rise, only after Nifty break the supports mentioned and sustains below the same.
CMP 12065-70....
Cheers...
Hrishi
Risky traders book partial profits near 12140, longs initiated near 12060
Hi All,
As posted in the last update, after the Bullish Counter attack pattern on daily charts, Nifty rallied by almost 5% and created a life time high near 12430 levels, however, Nifty is very volatile and has already come down by around 3% to trade near sub 12100 levels now.
Going forward, charts suggest that, Nifty is trading right into the support area of 11980-12090 (Upward gap from 12140-12187 and other important levels including Supertrend near 11980) and a couple of days back has also given a Bullish Harami Pattern, which is advantage bulls. Also, on hourly charts, it has given a positive RSI divergence, which would be confirmed above 12170-80 levels.
Regarding the event of Budget, it is very well seen in the past that for the known events, markets do follow "Buy the Rumour Sell the Fact" phenomenon, hence, Nifty is likely to reverse the immediate preceding price action post budget (Meaning, if Nifty rally right now there should be correction later or if it falls right now after breaking the supports, it should ideally pull back post the event)
Plan of action - By sticking to "Price is the king analogy", based on charts, I would suggest, any longs are advisable above 12140-70 on a conservative side, with stop loss below the recent lows and target of the all time high... Aggressive traders can, buy on dips with stops below the mentioned supports. Traders can think of sell on rise, only after Nifty break the supports mentioned and sustains below the same.
CMP 12065-70....
Cheers...
Hrishi
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