[SHORT TERM] NIFTY (trade setups)

[sgarg.in]

Hi Friends,

I will be posting short term analysis and trade setups for nifty index. I will keep my post brief and convey most of my analysis via charts (technical analysis).

Scrip: NIFTY
Instrument: Futures & Options
Duration: Intraday to 5 trading days.

Happy Trading,
Thank you,

SGARG

 

[sgarg.in]

TRADE SETUP #1

NIFTY (NSE:INDEX) traded down yesterday in Diwali Special Trading Session. Interestingly Nifty has been trading down in a choppy overlapping moves; indicating a corrective pattern.

I expect nifty to bottom soon, as there are couple of supports gap level @ 5649, retracement (61.8%) @ 5657 and also the price/rsi are diverging. The prices after bottoming, should move faster than 32 points a day (speed of wave i) to reach at-least 5850 (minimum expectation: 5815).

SNAPSHOT
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Last Price: 5666.95
Bias: BULLISH
Duration: 1 week
Expectations: 5850 - 6000
Minimum: 5815
Note: Move up (as it commences), will be faster than wave i (32 points a day).

Will update this post, when NIFTY can be safely said to have bottomed for the short-term. Next few session is the key.

Also will post intraday calls during trading hours (as they popup on my screen).

Thanks,

SGARG

 

[sgarg.in]

NIFTY (NSE:INDEX) opened with a gap to the lower side, with opening below the previous gap up on Nov 2 2012. Also the prices are below the lower trend-line.

Currently the bias is neutral. We will wait and observe the market till a direction can be traded (Not really a range-bound trader).
Possibility, wave 4 of the larger wave structure might be still unfolding (will post chart latter today).

 

[sgarg.in]

NIFTY (NSE:INDEX) opened with a gap up, after a relatively strong U.S. session yesterday. I still believe wave iii is commencing now, although it is possible wave V ended in a truncation (meaning a bear market for months to come have commenced), however we will still trade bullish because of the gap up open.

Expectation of 50 to 60 points in NIFTY FUTURES FROM BUYING PRICE.

TRADE SETUP

Type: Futures
Security: NIFTY
Expiry: 29NOV12
Duration: 1 - 2 days (could close intraday if market rallies today).

Bias: Long
Buy Price: 5607
Target: <OPEN> WILL UPDATE
Sell Price: <OPEN>

Result: <OPEN>

 

[sgarg.in]

NIFTY has failed to rally, after the gap up open. Markets quite often fill gaps and reverse. So I am not closing the position as long as 5571 is not decisively taken down.

What I mean by decisively, well a close below the level and a failure to poke above it the following day.