Sunday, August 18, 2013



Nifty Nifty highest tradable / voluminous index in Indian Stock market.Its every retailer question where will Nifty go on Monday. Or what levels Nifty will move in future. Here is what I feel.

Andrew Pitchfork Tren Lines:
Nifty failed to meet targets twice as per Andrew Pitchfork trend line methods. Marked in Blue Rectangle on upper side on chart.If we looks at the charts, Nifty is hitting the targets downside as per Pitchfork lines. So now every move seems to be sell until it moves past the target line on upside.

Above charts are from August Nifty Futures.

Recently, Nifty gave sell signal second time as well and closed below the line. Tomorrow is going to be little crucial to see the trade. Still I see bearishness in the market.

EW Lables:

As posted earlier, B wave completed with 3 wave structure at around 5754.45
Last Friday, Nifty corrected hugely as seen 4 years ago. They way bearish RED candles are formed, there seems to be more selling pressure than any interest of holding to the positions. Now nifty is moving in a down ward channel. Any opening at higher levels are to be sold into. In my other blog, earlier posted, buying puts or selling calls will give u more money in such a red candles are seen. We went with same strategy on Friday with 5600 puts in huge quantity which was a great success due to huge fall in Nifty.

Now nifty seems to be in a down ward channel moving to lower levels. As many of you know 3rd wave will be the longest wave, nifty may see more lower levels. Wave 1 of C is almost 600 points and then assuming 3rd wave C aslo minimum 600 points then from highs of 5754 the target to this fall could be around 5754 - 600= 5154. Many of us see some kind of positive divergence in Bank Nifty which will move upside that can hold the fall in Nifty. The way Nifty is at bottom of the channel, we have to maintain the SL on short postions till market gives reversal signal. RSI is going below 30 levels which is bearish signifying more bearish levels.

Please note that the below chart includes the pre opening prices of Nifty as well.


If we look at the Daily charts on Nifty spot.Nifty is ready to break down the channel where it took support earlier.Stochastic is giving bearish signs. RSI is also trying to move down wards. We have to wait to give sell signal on daily charts.


Nifty 5 Minutes:

Nifty shows some kind of positive divergence in Nifty 5 minutes.If there is a small pull back with gap up open tomorrow, I strongly believe that this pull back can also be sold into until we see break down of the channels in shown in hourly charts.

Nifty Monthly:

Nifty monthly chart shows that Nifty is broke down the diamond pattern which is very bearish. Earlier we posted the diamond break down on Maruti with good targets which were achieved. Now Nifty gave the  same bearish signs breaking below the diamond pattern.Breaking below 5476 is a free fall for the Nifty.

Nifty View from My friend Raja Shaker

Generally I do not trade on Harmonic patterns. But my friend does. Below is the chart of Nifty with projected targets by Feb 2014.

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