Hi All,
As explained in the earlier Budget Day post, As there was a downward move before the budget i.e. fro 12430 to the Budget day low of 11633, it was expected that Nifty should trade with a positive bias starting this week.
Accordingly, Nifty started the week positively and has already covered more than half of the downfall of budget, already up by almost 2% from the bottom.
On the hourly chart, Nifty gave a strong Bullish engulf pattern on the first candle yesterday and traded straight away with an upward bias.... After the recent price moments, the low near 11600, should act as a strong support going forward, if the rally need to continue upwards. Levels near 11500 as mentioned earlier and 11600 would see a strong buying pressure as it is also a 61.8% retracement of the rally from 11090-12430 levels and hence, any bearish view is only below these levels.
On the up side, Nifty will face immediate resistance near 11850-60 mark, post which 11900-11940 will be crucial levels to watch for which is the hourly Super trend.
If the markets sustained today's Gap up opening, 11700-11750 would be good supports on the lower side...
Plan of Action....
Firstly, though was not advisable on a Budget day, if anyone has taken a short trade suggested below the supports of 11900, must close the short trade as it has done its job by going down till almost 11600 mark.
Going long right now may not be advisable as the risk reward is not favourable and hence, my action would be buy on dips with stops below the supports mentioned on top and marked in the chart.
Cheers
Hrishi...
As explained in the earlier Budget Day post, As there was a downward move before the budget i.e. fro 12430 to the Budget day low of 11633, it was expected that Nifty should trade with a positive bias starting this week.
Accordingly, Nifty started the week positively and has already covered more than half of the downfall of budget, already up by almost 2% from the bottom.
On the hourly chart, Nifty gave a strong Bullish engulf pattern on the first candle yesterday and traded straight away with an upward bias.... After the recent price moments, the low near 11600, should act as a strong support going forward, if the rally need to continue upwards. Levels near 11500 as mentioned earlier and 11600 would see a strong buying pressure as it is also a 61.8% retracement of the rally from 11090-12430 levels and hence, any bearish view is only below these levels.
On the up side, Nifty will face immediate resistance near 11850-60 mark, post which 11900-11940 will be crucial levels to watch for which is the hourly Super trend.
If the markets sustained today's Gap up opening, 11700-11750 would be good supports on the lower side...
Plan of Action....
Firstly, though was not advisable on a Budget day, if anyone has taken a short trade suggested below the supports of 11900, must close the short trade as it has done its job by going down till almost 11600 mark.
Going long right now may not be advisable as the risk reward is not favourable and hence, my action would be buy on dips with stops below the supports mentioned on top and marked in the chart.
Cheers
Hrishi...
No comments:
Post a Comment