Update - 3.25 PM 5th March 2020
Nifty exactly took resistance near the start of resistance area marked on the charts near 11380-400... Hence, now on it's way down, buy on dips is valid, provided there is a bullish evidence on intraday hourly charts,,,
Cheers...
Hrishi
Hi All,
As posted earlier, though bulls were not successful to Come Back with a Hammer of 27th Feb and indices gapped down the next day by almost 4 %.
Now, after falling for 7 consecutive days, Nifty took support near the 11k mark, and created a low at 11036.
I found some bullish evidences as mentioned below...
1. Though Nifty broke the support near 11090, it closed back above it and took support near the psychological mark of 11k
2. The low also comes near the 78.6% retracement mark (of the rally from 10640 to 12450) near 11020-30
3. For past few days, starting from 2nd March, Nifty is developing a rare chart pattern called Dynamite Triangle
4. On hourly charts for past 3 days, Nifty gave a higher top higher bottom formation, which is a sign of up trend
5. Yesterday on daily charts, we have yet another Hammer like pattern with a reasonably long lower shadow, and unlike the Hammer mentioned in the earlier post on 27th Feb, Nifty has crossed the high of this hammer comfortably, as its already moved up by almost 1% and is currently up by 110 points today.
With all this, this looks like that a short term bottom might be in place, at least for a while, however, i feel there are following concerns for the same
1. The Dynamite triangle, can also be a pennant on the daily chart
2. A huge gap down opening on 28th Feb, will act as a crucial resistance
So my bias remains Bullish unless Nifty stays above 11k levels on closing basis preferably.
Plan of action -
Based on the bullish evidences and more importantly bearish concerns, it is advisable to go long only after the dynamite triangle break and above the high of the 2nd Mar, 11450 odd levels. However, traders will not get a favourable risk reward due to the crucial resistance area marked on top, hence batter to buy on dips with stop loss below 11k levels would be a better plan to trade, Also, advisable to look at stocks who do not have such a bearish gap down on the same day as Nifty and trade those stocks, one stock I observe was Maruti......
Cheers
Hrishi...
Nifty exactly took resistance near the start of resistance area marked on the charts near 11380-400... Hence, now on it's way down, buy on dips is valid, provided there is a bullish evidence on intraday hourly charts,,,
Cheers...
Hrishi
Hi All,
As posted earlier, though bulls were not successful to Come Back with a Hammer of 27th Feb and indices gapped down the next day by almost 4 %.
Now, after falling for 7 consecutive days, Nifty took support near the 11k mark, and created a low at 11036.
I found some bullish evidences as mentioned below...
1. Though Nifty broke the support near 11090, it closed back above it and took support near the psychological mark of 11k
2. The low also comes near the 78.6% retracement mark (of the rally from 10640 to 12450) near 11020-30
3. For past few days, starting from 2nd March, Nifty is developing a rare chart pattern called Dynamite Triangle
4. On hourly charts for past 3 days, Nifty gave a higher top higher bottom formation, which is a sign of up trend
5. Yesterday on daily charts, we have yet another Hammer like pattern with a reasonably long lower shadow, and unlike the Hammer mentioned in the earlier post on 27th Feb, Nifty has crossed the high of this hammer comfortably, as its already moved up by almost 1% and is currently up by 110 points today.
With all this, this looks like that a short term bottom might be in place, at least for a while, however, i feel there are following concerns for the same
1. The Dynamite triangle, can also be a pennant on the daily chart
2. A huge gap down opening on 28th Feb, will act as a crucial resistance
So my bias remains Bullish unless Nifty stays above 11k levels on closing basis preferably.
Plan of action -
Based on the bullish evidences and more importantly bearish concerns, it is advisable to go long only after the dynamite triangle break and above the high of the 2nd Mar, 11450 odd levels. However, traders will not get a favourable risk reward due to the crucial resistance area marked on top, hence batter to buy on dips with stop loss below 11k levels would be a better plan to trade, Also, advisable to look at stocks who do not have such a bearish gap down on the same day as Nifty and trade those stocks, one stock I observe was Maruti......
Cheers
Hrishi...
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