Head & Shoulders ? ? ?

Hi All,

As expected, Nifty took a resistance near the psychological mark of 8000 and fell sharply by more than 100 points.

 

Going forward, the 7870-7840 levels will be very crucial for bulls as they are key supports.

Also if Nifty breaks, it might give a breakdown of the Head & Shoulders (Bearish) Pattern on intraday

charts (Please refer the chart), which means it can fall further to its targets near 7770 levels.

Also RSI on hourly charts have taken resistance near 60 levels which again is a serious bearish sign.

On the higher side, 7925-7950-7980-8000 will continue to act as major resistances for Nifty.

The short term bias will turn negative if Nifty breaks crucial levels of 7870-7840......

We will initiate a trade after favourable developments on charts....

Cheers

Short

Hi all,

Risky traders can take a short position in Nifty near 7970-75, with a stop loss above 8000 and targets near 7950-7920-7900.....

Update @ 10.19 AM -

Nifty nearing first target of 7950..... Book partial profits and trail stop loss at cost....

Update @ 12.43 PM - 

Trail Nifty short stop loss above 7950 levels, trade initiated near 7975....

Update @ 2.45 PM - 

Nifty short trade second & 3rd target achieved @ 7920 and 7900 ...... Book full profits...

Cheers

Hanging Man . . . .! ! ! !

Hi All,

Nifty opened up with a gap yesterday, however, gave away all its gains, went in to negative territory, and finally closed flat near 7919.

As posted yesterday, 7950-60 will be the key levels to watch out for further upside, above which the psychological mark near 7980-8000 will act as important resistance.

Nifty on daily charts had given a Hanging Man Pattern on 18^th April, and a close below 7840 could mean further pain for bulls.

On the lower side 7900-7870-7840 will act as good supports for Nifty.

Cheers

Knock Knock . . . Bears.....! ! !

Hi All,

The bias for the markets will remain negative for intraday till the time today’s high is taken out....

Supports on the lower side will be near 7890-7870-7840-7820....

Cheers

Financial Suicide: Are you doing it?

Hi All, came across a nice whats app Forward.... Found it worth sharing....

Mr. Young's Mother-In-Law has gifted Daamadji Rs. 1,00,000 on his birthday. Excited with the windfall he decides to buy the latest smartphone and invest whatever is left. So he is spending Rs. 50,000 and saving Rs. 50,000.

How he buys the smart phone?

He goes to many e-commerce sites, reads customer reviews, then visits gadget review sites and reads expert views and then visits the local mobile store and enquires the rates, enquires with friends which phone to buy, checks his requirements and shortlists the phones and compares them diligently. Spends 2-3 days occupied with this question, brain storming. Tiring!

How he invests?

Chilling with friends: Yaar koi acha share bata, paisa lagana hai.

Friend who knows there is something called equities tells: BUY Dynamite. Upcoming sector, vast potential. Without even doing any research or analysis about the company, Mr. Young invests his hard earned (Mother-In-Law Gift) money and prays to God for double or triple gains.

Now consider:

Will you randomly give any expert or even your friend your money and tell him to buy whichever phone is good for you? Or will you do your own research?

The value of the phone falls by 50% once you step out of the store after purchasing it. It is a depreciating asset. So when you were ready to do all research for a depreciating asset, why not do some research for your investments? 20 years down the line what will matter? Which smartphone you used 20 years back or where you invested money back then?

Sadly, this is how most people invest. Iske Uske kehne par! No research, no knowledge, etc. but hard earned money gambled away. When your friend says bet on India in todays match, you cross question him: Australia is stronger right? But when the same friend says Tata Steel is good to invest, why don't you ask: But steel sector is depressed right?

This is nothing but financial suicide. We go to the best doctors, best lawyers, best counsellors for everything. But when it comes to financial matters we rely on friend, chacha, broker and have no clue where our money is going! Why?

Marching towards Psychological area.....

Hi All,

As expected, Nifty respected the levels of 7840-50 for a while on Wednesday, however comfortably surpassed it and closed marginally above 7850.

Now, as mentioned earlier, it’s likely to start its journey towards the next pit stop near 7970-8000 levels.

We will initiate a trade provided there is an evidence on the intraday charts.

Levels to watch out for –

Supports – 7840-7815-7790-7765-7700

Resistances – 7880-7910-7940-7980-8000

Cheers

Penultimate Levels

Hi All,

Nifty respected the levels of 7700 in the morning trades yesterday however surpassed the levels in the second half and closed above the resistance area.

Which means Nifty will now head towards the penultimate levels of 7740-7780-7800-7840, bulls are advised to stay cautious near these levels are as they are daily resistance areas. Above 7800-7840, possibly Nifty can rally towards 7970-8000 levels.

We will initiate a trade provided there is an evidence on the intraday charts.

Levels to watch out for –

Supports – 7690-7660-7600-7570-7500

Resistances - 7740-7780-7800-7840

Cheers

Bull’s Day Out . . .

Hi All,

Yesterday, markets expected a strong pull back in later part of the session thanks to expectation of better monsoons this year and a surprise closed door Fed meeting last night.

Nifty fell marginally and broke Friday’s low, however managed to bounce back and close positive by more than 100 points. As it has created a higher top higher bottom formation, the lows near 7500 will be very crucial, however jumping on the long trade in morning trades today may not be advisable as Nifty has rallied till 7680 levels which is 61.8% retracement of the fall from 7777 to 7515....

Levels of 7680-7700 will be very crucial for the upside to continue going further. A trade should only be initiated when we see any confirmation on charts, like we had a sell on rise strategy but after a strong rise yesterday we did not get any negative signal and we didn’t short the markets.

Levels to watch out for –

Supports – 7640-7600-7570-7500

Resistances – 7700-7740-7780-7800

Cheers

Wait and Watch . . . . ! ! ! !

Hi All,

Adhering to my previous view, Nifty is looking bearish and the sell on rise strategy might be fruitful in this scenario.

On Friday, Nifty traded in a tight range of around 40 points, and is expected to open on a flat note today, thanks to the global cues as the SGX Nifty is up by 8 points.

For any intraday upmove, Nifty has to necessarily cross the levels of 7570-80, above which it can move up to a strong resistance area near 7600.... One can look forward for selling opportunities near the resistance, provided charts give a confirmation for the same.

Levels to watch out for –

Supports – 7530-7510-7470-7400

Resistances – 7570-7610-7650-7700-7750-7780

We will initiate a trade after getting a suitable confirmation on charts.....

Cheers

Sell on rise . . . .

Hi All,

As expected the markets broke the crucial levels of 7580-70 and went down further till 7535-40 levels.

As mentioned earlier, Nifty is now likely to target the Rising Wedge target near 7400-7410 levels in coming days, provided there is no bullish confirmation on charts in the meanwhile.

The levels to watch out for –

Supports – 7515-7470-7400

Resistances – 7610-7650-7700-7750-7780

Till such time we do not have any bullish confirmation on charts, Nifty will be a sell on rise story....

Cheers

Trying their level hard....

Hi All,

Hi All, as mentioned yesterday, Nifty did not break the crucial supports near 7580-70 levels and traded marginally higher for the entire day.

Would like to reiterate that Nifty bas will change to negative only below the said levels of 7580-70, though the probability of the same happening is higher, we will play safe before taking any short positions.

Traders can think of remaining on the buy side till the time Nifty is above 7580-70 levels.

Levels to watch out for (No change)  -

Supports – 7570-7510-7470-7400

Resistances – 7650-7700-7740-7785-7800

Cheers

Buy the Rumour, Sell the fact....

Hi All,

As mentioned in the Budget day post, Markets were expecting a rate cut for more than a month now, and has given the upward move based on it. So as per the law of Buy the rumour sell the fact, markets expected to fall once the actual news is announced, and the same happened yesterday where markets tanked by more than 150 points.

While falling yesterday, Nifty also gave 2 bearish patterns, Falling Wedge breakout (Please find the image) and an Evening Star on daily along with a Hanging Man on Weekly charts.

However, the bearishness can only be continued if Nifty breaks the recent swing low of 7580-70 levels, below which Nifty can target close to 7400 levels based on Wedge pattern.

We will wait for further confirmations for taking any specific trade in Nifty....

Levels to watch out for –

Supports – 7570-7510-7470-7400

Resistances – 7650-7700-7740-7785-7800

Cheers

Be on your toes . . .

Hi All,

As mentioned in the earlier post, Nifty has given a bullish indication on hourly charts, and the is expected to trade upwards...

SGX Nifty is also up by around 28 points....

As usual, we will play safe and try to book profits in the opening trades if the momentum is seen waning.

Be ready to book profits, however, if Nifty opens on a flat note, new positions can be entered with same stop loss.

Cheers!!!

Let’s take a chance....

Hi all,

Though Nifty broke 7690 levels, it took support near the next level 7660 and bounced back smartly.

On hourly charts Nifty has given a Bullish candle, it has also taken a support on hourly Supertrend which is a positive sign for bulls...

Traders can take a Long Position near 7710-7715 with Sl below 7660-55 and targets near 7770-7800.....

Advisable that risky traders take this trade as the position will be held over this weekend, conservative traders can think of entering in to the trade on Monday morning, if the same levels persist.

Update on 4th April @ 9.35 AM - Book profits near 7740-45....

Cheers

An Evening Star . . .

Hi All,

Nifty respected the Rising window pattern mentioned in the earlier post of 29^th March and rallied higher to create a higher near 7777...

However, Nifty has given a Evening Star Looking pattern on hourly charts which suggests at least a temporary pause in the upmove, the levels of 7780-7800 will be very crucial to watch out for.

Nifty yesterday gave away its morning gains, however managed to see a pull back, but now SGX Nifty is trading down by around 42 points suggesting a likely negative opening for markets.

Levels to watch out for –

Supports – 7690 (Crucial) – 7660-7640-7600-7575

Resistances – 7780-7805-7820-7850

The bias for the markets will be up till the time 7690 level is held for Nifty as it would mean the index is still showing higher tops - higher bottoms formation, below 7690, however the intraday bias might change...

 

Not initiating any trade as of now and will come up with it after the first hour of trade if we see in progress on intraday charts....

Cheers....

Hanging Man hanged the Bulls for the day . . . .

Hi All,

As expected, markets respected the Hanging Man pattern which was an alarming signal for the Nifty.

Markets plummeted by around 150 points from the day’s high near the mentioned resistance area of 7750....

While plummeting Nifty also broke supports near 7670-7630..... and rested just above the psychological mark of 7600.... Now, it has filled the Rising window (Gap Up) of 18^th and 21^st March (7613-7617) and close above it, which is a sign of relief and which means the lows of 7600-7580 will be very crucial now.

The bias for the market will change from bullish to neutral, as a strong fall is worrisome for the  markets going forward.

SGX Nifty is trading with a flat to negative bias and a similar kind of opening is expected on Dalal Street, hence, we will wait and watch for taking any action.

Levels to watch out for  -

Supports – 7600-7580-7515-7475

Resistances – 7660-7685-7705-7750

Cheers

Another Man hanging......

Hi All,

Even on Thursday also Nifty could not close above the Falling window (Downward Gap) pattern near 7720-30, however managed to recover from its day’s lows near 7670.....

In this bargain Nifty has produced yet another Hanging Man Pattern, which may not be very bearish, but a consecutive appearance on 2 days makes it very alarming for the markets.

So going forward, the lows near 7670-7635 will be very supports which need to be held for any upside to continue, whereas on the higher side resistances will be intact near 7750-7780-7800....

Will update the market View after the first hour of trade if any significant development take place in markets....

Cheers..

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!!!