13th Oct ’23 - Unseen Double V shape - Nifty PostMortem
Nifty Analysis
Recap from yesterday: ”For tomorrow I wish to continue my bullish stance if 19776 support is respected. If that breaks in the morning session, I would like to change my stance to neutral. If 19671 level breaks in the forenoon session — I would definitely go short as we may fall below the double-top formation.”
Yes, you guessed it right by reading the title - I lost money both ways today. Firstly I went short because 19671 was broken. The short trade did not do well as we stopped falling. Secondly, we had a massive reversal - a total of 170pts intraday swing that really made my short position look like a sitting duck.
To start with, I did not expect we would have an opening candle swing of negative 147pts ~ 0.75%. Agreed that US markets were weak yesterday and INFY results disappointed. Guess what? Infy ended the day with just -2.34% loss. The rates pre-open showed was negative 4% opening on INFY would have really put the pressure on Nifty to have that deep-cut opening. But levels are levels and we traders respect that - I had no other option but to go short. The only mistake I made was not having a safe long position on the CALL side as protection. There again I never thought we would be rallying back to go-green and then fall back.
We had 2 V shapes today. The first reversal at 10.50 and the 2nd one at 14.25. I might have to test and find out what kind of trader made money today - A double V shape is normally not a Nifty50 phenomenon.
On the 1hr pattern, the first thing I would like to do is change my stance from bullish to neutral. We have broken the 19776 support today and well above the 19446 zone. For Monday I wish to go with the neutral trades only and go short if we fall below 19614 in the forenoon session. Till then I am eagerly watching how SPX will close the day today.
Recap from yesterday: ”For tomorrow I wish to continue my bullish stance if 19776 support is respected. If that breaks in the morning session, I would like to change my stance to neutral. If 19671 level breaks in the forenoon session — I would definitely go short as we may fall below the double-top formation.”
Yes, you guessed it right by reading the title - I lost money both ways today. Firstly I went short because 19671 was broken. The short trade did not do well as we stopped falling. Secondly, we had a massive reversal - a total of 170pts intraday swing that really made my short position look like a sitting duck.
To start with, I did not expect we would have an opening candle swing of negative 147pts ~ 0.75%. Agreed that US markets were weak yesterday and INFY results disappointed. Guess what? Infy ended the day with just -2.34% loss. The rates pre-open showed was negative 4% opening on INFY would have really put the pressure on Nifty to have that deep-cut opening. But levels are levels and we traders respect that - I had no other option but to go short. The only mistake I made was not having a safe long position on the CALL side as protection. There again I never thought we would be rallying back to go-green and then fall back.
We had 2 V shapes today. The first reversal at 10.50 and the 2nd one at 14.25. I might have to test and find out what kind of trader made money today - A double V shape is normally not a Nifty50 phenomenon.
On the 1hr pattern, the first thing I would like to do is change my stance from bullish to neutral. We have broken the 19776 support today and well above the 19446 zone. For Monday I wish to go with the neutral trades only and go short if we fall below 19614 in the forenoon session. Till then I am eagerly watching how SPX will close the day today.
