NIFTY

DISCLAIMER: These notes/comments have been prepared solely to educate those who are interested in the useful application of Technical Analysis. While due care has been taken in preparing these notes/comments, no responsibility can be or is assumed for any consequences resulting out of acting on them.Trading in Stocks/Commodities/Futures Carry Risk.

CNX NIFTY 5,693.05  (-103.85)  -1.79 %

Nifty opened up 50 points in the green, the result of positive divergence on the oscillator.But it could not sustain at that level and fell below 5849.9 . Market went to a high of 5849.9 and returned from there. It was the neckline of a Shoulder Head Shoulder pattern which was forming on the daily charts. It is a bearish pattern and the target is 5600 to lower levels.

Since the positive divergence on the oscillator is still valid, expect sharp upswings, but not the time to go long.Going short in the market at this juncture will not give a good risk reward — ratio since the Neckline of the SHS pattern is at 5850 which will act as a stoploss and target is around 5600.So does not make sense to go after 100 points with a risk of 150 points.


Better strategy is to wait for the markets to pullback, if at all, and then sell on any reversal pattern provided 5600 is not touched already.A negation of this bearish pattern will take place only if Nifty closes above 5971, which is the right shoulder, for 3 consecutive days.Till then bears will enjoy.

NSEIND

NIFTY

DISCLAIMER: These notes/comments have been prepared solely to educate those who are interested in the useful application of Technical Analysis. While due care has been taken in preparing these notes/comments, no responsibility can be or is assumed for any consequences resulting out of acting on them.Trading in Stocks/Commodities/Futures Carry Risk.

CNX NIFTY (5,796.90) + 35.55  + 0.62 %

Nifty did not break yesterday’s low and formed a Harami Pattern today on the daily chart.A harami pattern is a Japanese Candlestick pattern which means “pregnant”.Also positive divergence has appeared on the daily chart which means price is making new lows but oscillator, stochastics is this case, is making higher lows.

So beware of going fresh short. Market may move sideways or upto the 20 dma at around 5890. Stoploss is a close below 5748, if long.

Nseindia

NIFTY INTRADAY

Nifty Intraday 5 mins chart is displayed to show that Nifty did not break yesterdays low and continuously made higher highs and higher lows.Last there appeared a negative divergence which revered the trend.

Nifty 5 mins

NIFTY

DISCLAIMER: These notes/comments have been prepared solely to educate those who are interested in the useful application of Technical Analysis. While due care has been taken in preparing these notes/comments, no responsibility can be or is assumed for any consequences resulting out of acting on them.Trading in Stocks/Commodities/Futures Carry Risk.

CNX NIFTY (5,761.35) -93.40  -1.60 %

Nifty as I said 2 posts back that a fall below 5879 / 5844 will lead to a fall to around 5718 levels.Today NIFTY fell to a low of 5748.By another method I am getting targets of 5744 which is very near today’s low.Watch Intra charts closely to take further positions.

NSEIND

NIFTY INTRADAY

DISCLAIMER: These notes/comments have been prepared solely to educate those who are interested in the useful application of Technical Analysis. While due care has been taken in preparing these notes/comments, no responsibility can be or is assumed for any consequences resulting out of acting on them.Trading in Stocks/Commodities/Futures Carry Risk.

CNX NIFTY 5,854.75  + 4.45  + 0.08 %

People keep on asking how to trade intraday charts. I am giving below 5 mins intra chart for today’s NIFTY.

Point 1  A positive divergence on Oscillator and price taking support near yesterday’s low Go Long.

Point 2  Negative divergence near yesterday’s high  Go Short.

Point 3  Positive divergence followed by breakout Failure near yesterday’s low  Go Long

Point 4  Breakout Failure but no negative divergence.So ignore it or if you follow only price go short  Ignore / Go Short.

Try to combine price patterns and oscillators which will give you a double confirmation.

Would you take a Long position at point 5, extreme left, when you see  Multiple Positive Divergence.If not why ?

Here Price is in a down trend and no supports on price are seen.But despite that price made a pull back but preferable to ignore the trade.Where as in today’s trade the boundaries are defined and market is sideways.So supports and resistances are well in place.So take help of oscillators only as confirmations. But always keep stop losses.

NIFTY 5 MINS

Nifty 5 mins

NIFTY

DISCLAIMER: These notes/comments have been prepared solely to educate those who are interested in the useful application of Technical Analysis. While due care has been taken in preparing these notes/comments, no responsibility can be or is assumed for any consequences resulting out of acting on them.Trading in Stocks/Commodities/Futures Carry Risk.

CNX NIFTY (5,850.30)  -1.95  -0.03 %

As I mentioned in my last post to watch the pink channel that has formed and NIFTY moved between that channel on Friday.Any break and close below 5844 will take market to 5718. A failure to go below 5844 will take NIFTY to test 5971.

NSEIND

NIFTY

DISCLAIMER: These notes/comments have been prepared solely to educate those who are interested in the useful application of Technical Analysis. While due care has been taken in preparing these notes/comments, no responsibility can be or is assumed for any consequences resulting out of acting on them.Trading in Stocks/Commodities/Futures Carry Risk.

CNX NIFTY (5,852.25 ) -90.80   -1.53 %

In my last post I had mentioned two points namely 1) That Nifty is facing resistance at the Upsloping Trendline and 20 dma at 5951 ( yellow moving average). 2) In the current upmove volumes are decreasing as shown by the pink arrowline.

For any trend to continue, it should be supported by volumes — which was not happening here.So you see the result—– the Market cracked.

There are two possible scenarios at this juncture :

1) The market may move between the “ledge” shown by pink parallel lines.  or

2) A straight fall to 5700.

The lower level of Ledge is 5844 and upper level is 5969. 50 dma is at 5925 and 20 dma is at 5940.

NSEIND

 

 

 

 

NIFTY

DISCLAIMER: These notes/comments have been prepared solely to educate those who are interested in the useful application of Technical Analysis. While due care has been taken in preparing these notes/comments, no responsibility can be or is assumed for any consequences resulting out of acting on them.Trading in Stocks/Commodities/Futures Carry Risk.

S&P CNX NIFTY 5,939.70 + 41.50  + 0.70 %

Nifty has closed with a gain of 41.50 points. It has closed above the 50 dma of 5928. It is being resisted by the 20 dma of 5951 and the upsloping trendline at 5990. But during the current upmove volumes are decreasing as shown by the pink line.Close above 20 dma of 5928 for 2 -3 days with volumes may halt the downtrend.Nifty in the meantime could not close below 5879, the level which I had been mentioning for Nifty to be bearish, even for a day. So wait for trend to be clear.

NSEIND