Update - 28th Feb 9.40 AM
Long trade not initiated as Nifty did not surpass the Hammer's high.....
Markets have fallen by almost 10% from the all time high near 11430, hence traders are advised to take trades with proper trading edge and money management.\
Notable supports now are 11000 - 11280......
Would not be advisable to go long without any bullish evidence...
It would be a great opportunity for investors though, to buy quality stuff (Bluechips, ETFs, Mutual funds, etc) for long term investing at low prices.
Cheers....
Hi All,
After substantiating the Buy the Rumour, Sell the Fact analogy post budget.. Nifty, thanks to a mix of domestic and macro factors, plummeted sharply by > 6% and created a low near a prior support zone of 11500.
On account of concerns related to slowdowns of economy and the threat to world economy due to the outbreak of Corona virus, the index fell from 12250 levels to 11530 levels in less than 10 trading sessions. And except today, it was a crear cut win for bears in all the sessions.
However, after a gap down opening followed by a sustained downward move today, bulls recovered
Long trade not initiated as Nifty did not surpass the Hammer's high.....
Markets have fallen by almost 10% from the all time high near 11430, hence traders are advised to take trades with proper trading edge and money management.\
Notable supports now are 11000 - 11280......
Would not be advisable to go long without any bullish evidence...
It would be a great opportunity for investors though, to buy quality stuff (Bluechips, ETFs, Mutual funds, etc) for long term investing at low prices.
Cheers....
Hi All,
After substantiating the Buy the Rumour, Sell the Fact analogy post budget.. Nifty, thanks to a mix of domestic and macro factors, plummeted sharply by > 6% and created a low near a prior support zone of 11500.
On account of concerns related to slowdowns of economy and the threat to world economy due to the outbreak of Corona virus, the index fell from 12250 levels to 11530 levels in less than 10 trading sessions. And except today, it was a crear cut win for bears in all the sessions.
However, after a gap down opening followed by a sustained downward move today, bulls recovered
piercingly and closed the day, just 45 points lower, whereas in the morning trades, Nifty was down by close to 140 points or so.
In this bargain, bulls have managed to create a bullish Hammer pattern on the daily charts. With hourly RSI being as low as 17-18 and daily RSI being near the oversold region index is likely to witness at least a small pullback on the upside to begin with. Also, prices touching near the lower end of the daily Bollinger band, increases the odds in favour of bulls.
Plan of Action -
A Hammer is only confirmed when prices cross the high of it sustainably. Hence, Nifty should necessarily sustain above 11665-11680. The resistances above would be near 11700 - 11730 - 11800-11890 - 12000. Since the risk reward is not favourable for immediate longs, it is advisable to buy on dips. Aggressive traders can long above the Hammer's high with smaller stop losses below 11600-560. The bias should continue to be bullish for the near future, unless Nifty stays above the supports near 11480-11500 mentioned on the charts. However, the mid term bias can only be changed to bullish if, Nifty sustains above the daily pivot highs of 12150-12250...
Cheers
Hrishi...
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