Skip to main content

NIFTY, READY FOR SELL OFF ?

Nifty MULTIPLE TOPS AND INVERSE HNS

As we can see in chart provided above Nifty is witnessing multiple tops near 6090-6150 zones. Nifty has tasted that zone 5 times in last 6 months but every time it is facing selling pressure near the same. Recently we have seen another failed attempt to resistance zones which was confirmed by a bearish engulfing candlestick formation. Bearish candlestick formation is a bearish reversal pattern. Inverse head and shoulder pattern is also visible which has up sloping neckline. Inverse head and shoulders with up sloping neck line have strong bullish implication than normal head and shoulder. Any successive breakout above 6200 levels may witness an extensive rally of 800-1000 points from neckline. Election year is also approaching that would definitely prevent bulls to play blindly and we may see a withdrawal by FII before 2014 elections and there is no surprise if NIFTY start correcting from these levels and current highs may remain market top for next 6-8 months. It’s time to trade cautiously and one should avoid taking longs in NIFTY until it confirms a clear breakout above neck line of potential inverse head and shoulder pattern. Stability below 6150 zones remains bearish for domestic markets and primary target would be 5740 for this correction and then further stability below 5700 would confirm a double top formation and then decline may extend towards 5200 and more down side.

Labels:

Comments

Post a Comment

Popular posts from this blog

Will Exhaustion Gap Halt the Down Trend in Nifty?

In this video we have explained what NIFTY is likely to do in next few sessions. 
Post a Comment
Read more

Nifty Options Weekly Expiry; MAX PAIN stands at 13400

#NIFTY #INDEX currently trading at 13438, down by 90 from previous close. Today index has opened gap down and taken out the low placed yesterday at 13449 triggering primary weakness in market for the day. Immediate support is now placed at 13390, retest to this level can’t be ruled out but stability below 13390 will result in to further weakness and then attempt towards 13350-13310 zones can’t be ruled out. Key support will be at 13300 and further stability below that level will bring more weakness. Resistance is now placed at day high which stands at 13488, any sustained move (Less likely) above that level will bring some relief to bulls and then attempt towards 13540-13590 can be seen.  On #option_chain heavy #call_writing is being done at 13500-13600 strikes where as short covering is visible in 13450 and 13500 puts whereas longs build up seen in 13400 puts with high volume. Based on current #OI position level of #option_pain stands at 13400 thus based on current data at 10:52AM...
Post a Comment
Read more

Will Gold be Cheaper or Sky Rocket till Diwali?

  Gold spot international currently trading at $1916 up by $15. Gold has been staying within the range formed on August 11, 2020 by a strong bearish bar. It has found multiple supports near the areas of $1870-1860 which is also stands near the low headed by that bearish bar as discussed above. This entire consolidation within the range of bearish bar has taken shape of a descending triangle and now price has climbed above resistance line of this tringle suggesting bullish potential. Price had been staying below 35 days SMA since its bearish cross below SMA during month of August this year but now it has crossed above the same and formed a complete bar above the moving average suggesting bullish developments on MA crossover front. Based on current developments on chart gold is likely to remain bullish as long as it holds above $1885 and having a strong resistance placed near the areas of $1930-1935 zones. Sustained move above $1935 will further strengthen bullish outlook and then it...
2 comments
Read more