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.
NIFTY FUTURES (6145.75 ) -108.25 6037.5
I received a lot of mails asking whether markets are bullish after the RBI announcement and what to do.Let me explain a bit if trading strategies.Entries are taken on pull backs of upward breakouts and pull backs to support as “RISK REWARD” ratio is favourable.Vice versa for bearishness.Arbitrary entries do not give a favourable risk – reward ratio.
Now in the current scenario, imagine a person did not take a position because of US FED and RBI policies.What he should do ?..Maybe he can enter on supports if he is bullish or sell on rallies near the all time highs around 6290 – 6348 with that as a stop if he is bearish.But he has to have a “view” on the markets.
In my case, I had given buys at two points namely 5645 and 5889 ( see green points )and trail it.The flag formation is no doubt intact but a close below 5945 negates the flag and long positions have to be liquidated ( not short ).A close below 5706, will end the Uptrend.If market closes below 5945, I will sell the longs and wait for fresh patterns to emerge.
Resistance for the upmoves is at
6209.9 / 6349
On the Weekly Charts, Nifty Futures have formed a spinning top which means markets are not decided on the future direction.
NIFTY DAILY
WEEKLY
BANK NIFTY FUTURES (11214.1) -490.8 10722.3
Bank Nifty Futures have formed a flag and a close below 10538 will negate the flag.A close below 10000 will negate the bullishness .
On the Weekly Charts
11030 – 11300 is resistance.
WEEKLY