NIFTY ANALYSIS AND INTRADAY PICKS
NIFTY ON 30-08-2022
After a gap-up opening NIFTY began its unilateral northward rally defying all the important resistance levels to reach near the 17800 which is a congestion zone.
Buying in all the indices along with BAJAJ FINANCE (4.91%), RELIANCE (1.55%) and HDFC BANK (3.24%) pushed the market.
BANK and IT emerged as leaders with gains of 3.29% and 2.63% respectively.
NIFTY closed at 17759.30 with a gain of 2.58%.
Technical View : (Daily Chart)
NIFTY has made a strong Bullish candle which generally indicates the positive sentiments of the Market. However, for time being it is better not to infer anything out of it. Why I am stating this? It will be tried to explain in the following segment.
NIFTY is moving above EMA 13, 21 and 34 and EMA 34<EMA21<EMA13 which indicates that NIFTY has successfully reclaimed its positive territory for short-term.
RSI has reclaimed 60 Level which indicates that NIFTY has regained its bullish momentum.
Support and Resistance : Daily Chart
17700—17625 will work as support levels for NIFTY. If Index slips below this level 17550-500 will work as strong support level.
On the upper side NIFTY will face resistance in the range of 17800-17850 which is a congestion zone.
View for Traders:
Today we will not focus on the levels for buying and selling. Rather, under this segment we will try to understand Why the formation of strong bullish candle has not been taken into consideration in general manner and why trading the levels may incur the losses. In fact, these two will come hand in hand.
Let’s have a look at the portion of the chart which has been encircled. Can we find some similarities? At first glance one could find that candles are showing no particular trend in the three cases. Also, the general interpretation of the candles do not work in such formation. The current period is going through the same phase where no trend is visible on chart and this is what I call the headless-chicken like pattern when the Index behaves in quite an unpredictable manner.
So, what should one do under such circumstances?
The recent candle-formations of similar nature signals to keep calm and wait for Index to break/breach the important levels.
Hence, it is recommended not to trade the levels and hold positions on either side. It is better to follow the trend and close the trade every single day.
INTRADAY PICKS:
1. GUJRAT GAS
BUY IN THE RANGE OF 480-481.50
TARGET1: 486.85
SL 479
2. CIPLA
BUY IN THE RANGE OF 1048-1051
TARGET 1070
SL 1040
After a gap-up opening NIFTY began its unilateral northward rally defying all the important resistance levels to reach near the 17800 which is a congestion zone.
Buying in all the indices along with BAJAJ FINANCE (4.91%), RELIANCE (1.55%) and HDFC BANK (3.24%) pushed the market.
BANK and IT emerged as leaders with gains of 3.29% and 2.63% respectively.
NIFTY closed at 17759.30 with a gain of 2.58%.
Technical View : (Daily Chart)
NIFTY has made a strong Bullish candle which generally indicates the positive sentiments of the Market. However, for time being it is better not to infer anything out of it. Why I am stating this? It will be tried to explain in the following segment.
NIFTY is moving above EMA 13, 21 and 34 and EMA 34<EMA21<EMA13 which indicates that NIFTY has successfully reclaimed its positive territory for short-term.
RSI has reclaimed 60 Level which indicates that NIFTY has regained its bullish momentum.
Support and Resistance : Daily Chart
17700—17625 will work as support levels for NIFTY. If Index slips below this level 17550-500 will work as strong support level.
On the upper side NIFTY will face resistance in the range of 17800-17850 which is a congestion zone.
View for Traders:
Today we will not focus on the levels for buying and selling. Rather, under this segment we will try to understand Why the formation of strong bullish candle has not been taken into consideration in general manner and why trading the levels may incur the losses. In fact, these two will come hand in hand.
Let’s have a look at the portion of the chart which has been encircled. Can we find some similarities? At first glance one could find that candles are showing no particular trend in the three cases. Also, the general interpretation of the candles do not work in such formation. The current period is going through the same phase where no trend is visible on chart and this is what I call the headless-chicken like pattern when the Index behaves in quite an unpredictable manner.
So, what should one do under such circumstances?
The recent candle-formations of similar nature signals to keep calm and wait for Index to break/breach the important levels.
Hence, it is recommended not to trade the levels and hold positions on either side. It is better to follow the trend and close the trade every single day.
INTRADAY PICKS:
1. GUJRAT GAS
BUY IN THE RANGE OF 480-481.50
TARGET1: 486.85
SL 479
2. CIPLA
BUY IN THE RANGE OF 1048-1051
TARGET 1070
SL 1040
Penafian
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