Nifty's Trap

We are now at major support level. Looks like Nifty may bounce from here. There are multiple supports near 8540 clearly visible in hourly chart. Further down there is strong support near 8500 levels. I believe 8500 should hold

 

As we discussed earlier, 8500 been major support, that has been respected. I hope it's not a dead cat bounce as today market rose 1.85%

 

Dear Shabir and Yankeendin,
which TIME FRAME is ideal for following charts levels? Hourly or daily?
For trading style mentioned in your book and the one we have been following for past couple of years we take positional trade for breakout for one to fifteen trading session. what is the right time frame for this.type of trade?
and is the same timeframe applicable on stocks and NIFTY?

regards
Veren

 

Hi Veren,

I prefer to look both daily and hourly chart.

1. On looking daily chart we get to know overall trend and also main support and resistance level.
2. I look into hourly(or 30 min) chart to get the best possible entry point by way of chart pattern. One such trade in this forum is explained at http://diytechnicalanalysis.com/community/threads/sbi-swing-opportunity.2333/ . Another trade is explained at http://diytechnicalanalysis.com/community/threads/adani-port.2399/

By the way, this is only my view point. But I have got handsome short term profit using this strategy.

Let's see what Shabbir has to say on this.

 

Hi Shabir n yankeendin.
.so what's your view on nifty now.
Short at a pull back?))

Regards Veren

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Awesome. Thx for sharing.

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Agree with inverted head and shoulder pattern. I also see something else. I see bullish flag been formed. If it breakout from the downward channel in next few days, we are up for a mega rally and I see 10k on cards in coming 6-9 months.

 

Short only if it breaks 8500 decisively.
Or
play accordingly as per the downward channel that I drew in Nifty chart. I mean short if it touches upper trend line of the channel. Buy if it touched lower trend line of the channel. Stop loss would be break out or break down. Hope I am clear

 

what a melt down... As per chart nifty at minor support. I see nifty gradually moving down. target of 10k looks bleak now.. New target seems to be 8000 rather than 10k.

I am now exiting from long term investment stock, as per me market will eventually break 8k and move to 7k. Let's c what in store.

Others, what are your views now on nifty

 

I think we should not make haste for investment ( though I made few earlier). Not sure how much it will go down. 8000-8100 could be the level.
Also not sure if there will be a quick recovery. Hope there shouldn't be any unpleasant news in coming couple of months.

 

Slow investment will help. I am sure market will take couple of month to recover

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