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Nifty Daily

28 Jan 2021 ‚óŹ 03:54 PM

LONG%

SHORT%

42%

58%

Position Sizing model - Long % = percentage of indicators bullish v/s Short % = number of indicators bearish, Including both daily and weekly time frames.

  NIFTY          
 TIME TREND Up Level   Down Level
 Short term trend Down to Up  14310 13713

The trade setup for nifty today has many similarities to that seen on the last day of expiration in September. The nifty bottomed on that day after extreme readings in the swing and a lot of call writing in the options market. Nifty closed below the 40 day EMA but formed a Doji star after a gap down today. If prices gap up and close significantly higher then you will end up getting a rare pattern called "A morning Doji Star" in candlestick charting. We did not close positive today else I would have to change the trend reading to up. The 1st resistance on the way up will be the 20 DMA at 14,300. Not up but biased for a reversal anytime.

Nifty came very close to the rising trendline from the March bottom at 13,700. The falling trendline from the recent top is at 13,950 and a move beyond that would break out and start a move towards the next resistance at 14,364. 

I have been discussing the swing chart all week and the reading came in at 8 and 6 respectively. Both were in single digits. The 1st indicator based on the 9-day average was at 6 and is now at the same level as it was on 24th of September. Both remain ready to take off given the bull market bias.

  BANK NIFTY        
 TIME TREND  Up Level   Down Level
 Short term trend Up  31745 29687

An a-b-c correction is over for Bank nifty as it closed positive and came in close vicinity of the previous wave IV near 28,976. If wave 4 is complete we should start wave 5 up, unless wave 4 starts to develop into a triangle. Even in that case, a move up retracing at least 61.8% of the fall would occur. A retest of the 20-day moving average at 31,745 should be the 1st objective. 

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