Nifty's Trap

We had observed nice uptrend couple of days ago. But now it seems like a trap to capture everyone at high prices. Market is overbought but 100 point down before opening the market was disastrous and could be a nightmare for some uninformed swing traders if trend continues.

There may not be much impact on day-traders but they also need to change the plan drastically at the last minute. Small retail traders seems to be unaware how to react.

Also, observed that automated systems by big institutions are quite intelligent to keep the retailers out of the bay and keep trading furiously at EMA levels. Most of the time “Shooting stars” captures yours stop loss and throw you out of the positions for no real reasons.

Interested in knowing how these situations are tackled by others.

 

Yes,
That's why professional gain many times. We gain sometimes but bet always.

 

Sir
I do not know technical analysis.in present market scenario future and option play important role.All big players create their position in f&o before any move in any direction.

 

Nothing to worry as of now. Nifty still in strong uptrend. Correction was necessary. Check attached chart

 

Thanks for the update. You guys rock

 

Same happened in June.. nifty rallied only after filling gap

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Still trend line not broken yet. I have seen time again, if trend line not broken for 2-3 continuous days, it bound to go up. Let's see what's in store.

Note: Nifty had side ways movement for 2 days but ended few points up in green. Let's wait and watch another day, then may be it's clear

 

I think Nifty must touch 200 EMA to take a rise in full swing. IMO. 8640-8650 levels ?
May be another island gap and rise.... in next few days ??

 

I think some gap is filled today Shabbir.. but problem is.. 2 continuous doji's indicating indecisiveness in direction..

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Yes many traders are closely watching 8850 to 8860 levels.

 

Finally island gap closed completely. Also as informed earlier, up trend line is still intact.

Looking at charts target looks to be 9200 with 8700 as strong support

 

in coming days range of 8910 - 8928 is very crucial zone , unable to close above it, nifty can see another down move towards 8760 - 8700. bulls need a close above 8928 for a move towards 8968 - 9056 - 9120 . bears below 8700 on closing basis can drag nifty to lower levels. watch , watch & watch and be careful while taking any long positions. today FIIs liquidated long positions (2.6 k) and added short positions(0.8 k) in index future. lastly, all price levels are of nifty spot.

 

Thanks for sharing those levels.

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