Good Morning Fellow Traders!
Wishing all of you a happy, prosperous & peaceful 2018 – Do take care of which will be part & parcel of this year- Learn more about stop losses – It is always better to cut your losing trades & carry your winning ones.
Yes, you heard it right- FBO not FBI Agent – False Breakout Offender (that’s what this fellow seems to be)
Excited to come up with the first video of 2018 – Cunning Fellow Forgot about the Night Glasses I was wearing – How he can assume so that I won’t as I talked about stars before night is about to fall at 697-698 in previous video- Selling top@690-650 Boom & Star before Night Falls@697-698.
Check the Video Below
Key Level 697-698 – Magical one gives 677 in 1st attempt – I closed the update- bounces above 700 –deceives traders but not me as I was wearing night glasses all throughout the journey.
Why Night Glasses- we all know it helps to see properly incase of starburst or halos situation. Halos – circular light above the holy saint which cannot be seen through naked eye.
One thing very clear –this fellow when it broke above 795 first time- I came up with the update –False breakout above 800 trying to tell you something
Check the Video Below
Auropharma is serial offender of doing false breakouts- Earlier above 795 & this time above 697.
I warned as well that be careful below 697-698 – Next time don’t forget to wear your night glasses.
So Lets begin!..
Note --- Words / Alphabets /Pharses used in the text / video is not to hurt the company / individual person. This is a piece of analysis & writeup.
1st Target @673 done.
Made an attempt for 2nd target of 677 - went close to 675 & turned down.
For short term now we will trade on upside or long position only if it goes & sustains above 670
else below 664 -day low -it is open for 660- 655- 650 which is important support level
Auropharma Bearish Scenario mentioned above will take place only if Nifty Index fails to move above 10500 & starts falling below 10450- 10400- 10360-10370 ( 10350-10370 is important support zone for Nifty) -If Nifty breaks below 10360-10370 then have chances for more downside as mentioned in my last Nifty update.
Above 10500 - It can push upside to 10535 -10540 (Intraday Target) - if faces resistance in the zone 10535-10540 then we have bearish view on Index.
Above 10540 -it will likely cross 10550 Highs & make new high for the day.
Made recent low of 665.25 from 669 highs as updated above & holding above 665 - as suggested in the video -one should always take minimum risk of stops below 665 -2points below -663 & trade for upside.
Any sell below 663 for 660-655-650 & Above Holding 665 below - can push upside for 669- crossing 670 will push further upside for 677-680-689
Avoid trading long / buy positions below 665 - Sell only below 663 - No Trading Zone between 665 - 663
As it is spending lot of time & doing sideways between 665-667 - it is better to wait & watch for market direction rather than guessing which side it will head next & execute as suggested earlier.
As expected Nifty falls below 10500 - Bullish above 10500 for 10540 - Look for a fall 10450 - 10400
If zone of 10410-10420 holds - It forms harmonic bullish bat & we can look for reversal short term for 10475-10500 & above 10500 - 10520-10540
or if crosses above 10450 in next morning session.
Bearish View continues next below 10405 for 10360-10370 which is very strong support as break of 10350 will lead to more downside.
Good Morning !
Auro pushed above 665 for 669-670 updated target zone in above update & failed to cross in convince manner so partial targets were achieved.
As Rsisky Trader one could have traded sell or short position as it failed in 670 zone yesterday & today as well dipping below 665
Kindly maintain trailing stops above 666 if taken shorts in 669-670 zone or below 663 mark as going above 665-666 mark we need to become cautious in our sell positions.
Downside Target mentioned were 660-655-650 with important stops above 666.
Closing sell position as it dipped close to 661.70 & failed to touch our 1st downside objective of 660 mark.
We do not deny about accumulation in auro pharma so closing our sell position & shall look next for buying above 665-666 or any dip which holds above 660 mark that means if it falls & holds above 660 mark then we buy or we buy above 665-666 mark.
Got the dip below 665
Bravo - Turned down again exactly at 665 levels & trading at 663 - we are looking to buy with stops below 660 - to lose 2-3 points as the risk & gain is open upside- sky is the limit.
As expected we have taken long position in Nifty above 10450 as mentioned in the post above. Trailing stops to 10460 mark. Target upside as 10500-10520-10540 as mentioned.
Safe confirmation now is - It has to cross 665 mark to give us confidence else we take 1 point stop if goes below 662- buy position taken at 663.
So, Trailing my stop loss in current buy call to 662 as any move below 662 will dip sharply for 660-655-650 & failure to cross 665 mark upside.
And if Auro crosses above 665 - I don't have to take any more pills.
Last Price@10475 - Closing Buy Position
Nifty is struggling to move upside so do Auropharma - We are booking Intraday profits in Nifty at 10475 & shall have bullish view once it crosses above 10500 mark else no out for the day.
Auropharma as well closing buy position below 662 mark. Shall consider only above 665 later.
Nifty - Bearish BAT _Sell bet 10490-10500 - Next Buy only above 10510 - -Sell Pattern Invalidates above 10505
Holded 662 downside -Moving above 665 - went to 668-669 same resistance zone so booking partial profits & out for a while.
Our stops taken above 10505 for selling trade in 10490-10500 zone as suggested.
Only for extreme risk takers who can afford 30- 35 point stops above 10540 -They only take overnight sell position ( Going above 10540 - Extreme Bullish Scenario opens upside)
Failing to cross 670 multiple times -has strong resistance on short term basis unless it crosses & holds above 670 for 5-10 mins we will avoid long positions & below 670 - we are still open for the dip to 660- 655-650.
One Bad News & One Good News
Bad News is extreme risk taking sell call took stop & updated it can be extreme bullish.
Good News - Opening level got stuck in 670-672 - dropped to 666 ---- 665 is important level so it holded & bouncing back again from that day low we look for 674-675
Any support between 665-667 is entry opportunity for next higher trade.
Risk Taking call was for Nifty - Bad News
Auropharma - Good News
Short Term Resistance is 671.50 Support is 665-666 so look to buy close to support or above 671.50 resistance next
Back again in the important support zone 665-666 as suggested earlier
- if holds then we buy again are we heading upside again
3rd Time we are coming down from upside resistance
Auro is moving on ladder - 670.50 -----671.50 --------672.50 - So, join the ladder above 672.50 for 675 -----677 & Take Rest If moves above 677 - holding 677 - no dip then moves gets extended to 689 -final target or we will close the post thanks.
As expected we got the extended target which is close to 689. Closing the update. Be careful
As new long positions only above 689-690 - Important level.
As we still fear that going below 677-678 & holding down below 680 it will attempt 669 & below 669 - 665 - 660-650
Abhishek H. Singh, CMT
India Regional Manager
India Markets-BSE, NSE chat room- https://in.tradingview.com/chat/#b4sFOMIVqPkq8gfQ