Price Discovery @ Higher Levels

Hi,
So finally we retraced back on 12 Oct levels from where we took off from previous range. As we are inching higher and higher we are witnessing a decent amount of profit booking and that is how we discover Price. As of today we are in between the two trading range so cant say decisively that we are back in previous range or not, but past price action completely warns out for carrying shorts for more than 100-150 points. In my view 5050 will be important level to watch and I hope there are fair chances of bounce back in Nifty. If we still linger around 5050 level tomorrow then we can think of 100 points downside from there coz on such gaps there's always some 100 points game to be played on. So lets hope for another interesting morning for some big action and swings.
till then....
Happy Trading!!!

Breaking Out in New Trading Range

Hi,

Its cracking Diwali time for our markets as we broke out of range today. I was expecting a decisive close above 5040 which is indeed a crucial level posted at 16th Sep(5030 +/- 10 pips) as well as in last post worked!! and we are ready to trade in hopefully new territory.

See charts how we traded in last trading range....

Now for tomorrow we can see some downside retracements below 5100 which will be best entry points for longs also half yearly results season is also there so me may see some volatile moves typically in Indian style. Upside targets are already mentioned in 16 Sep post hopefully with help of positive global cues and earning season may drive us to new highs.
It will again be premature to guess the high of next trading range but as my upside targets are quite near I'm estimating that we can hit the new top of this trading range to somewhere around 5220 and then we might see some consolidation from there. (projections are based on the assumption that we have left our earlier trading range and heading for the new range)

Hope you loved reading it.
Happy Trading!!!

Grand Levels - Scenario Building up for BO

Hi,
Today we hanged most of the time above 5k and amazingly closed above 5k too as per adjusted closing!!!!


Morning we got a nice pullback exactly around 4980s levels as suggested in last post a perfect V shape reversal that I expect from my calculated support levels. The most painful thing for bears is that we closed above 5k which is quite surprising. Falling levels did tempted to give a buy but its not quite wise to go against the trend but as things pans out in evening jobless claims data of US is amazingly positive and hopefully we can see a nice rally in the morning trade tomorrow. Any closing above 5040 levels will take up Nifty to some new untouched levels for this season so watch for that.


Hope you liked reading it.
Happy Trading!!!

Alternative Scenario - Bullish Breakout

Hi,
For a while I do started preparing myself for upside breakout as its a bit questionable whether we are having a so called long awaited healthy correction or not. When it comes we will see but for the time being it will be wise to prepare bullish opportunity which may be in near term on charts. In Chart below there are possible S/R lines for this setup. Clearly on charts bull backs are quite strong from sub 4950 lvls.



Well here are some buying points, if u do get V shape reversals from these points its a great killing opportunity. If one lvl fails reverse ur positions and target for the next level. (Levels are drawn keeping in mind bullish breakout scenario)

1. 4980 (which was my todays buying point)
2. 4955
3. 4880
Target of this bullish scenario, upside of this trading range.

Wish you all the best with levels.
Happy Trading!!!

Grand Levels - 5030 Break Out Still Bias is Bearish

Hi,

Yes we did broke out on the upper side of full consolidation day but its hardly 50 points above the crucial lvl which suggests so far that 50 point filter should be placed for both side. Clearly on charts trading range was completely stalled and we consolidated again full day on 1st. Now too much consolidation in such short range makes this bull run a bit questionable and gives more fuel to the argument that rallies at the top are steeper. Again consolidation were with low volume and huge divergence in RSI clearly indicating weakness (see the chart).

In my opinion what we are witnessing is sort of steeper moves. Last two trading sessions at SGX again have given sub 5k lvls closing which can be turning points of this rally. Now it will be interesting to see if in the morning how low we can manage to open and how bulls will be reacting on any kind of gap down which is a quite a rare thing for a while.


Hope you loved reading it.
Happy Trading.