Closing Range - 19700/19921
Extended range - 19618/20003
Bearish Harami formed in the previous session was negated today by a bullish hammer. The volumes are slightly better than yesterday's session. We again saw Indiavix cooling by another 3.5%. All these indicate a restricted downside. Nifty took resistance at the middle of the newly identified upwads channel. No major red flags today. We have seen stock reacting to results after a day or two. If HDFC Bank runs tomorrow, we have see shosrtcovering in Nifty post 19850.
Possible trade: Risk reward ratio is in favour of bulls. You can do long with low of 17th Oct as SL.
P.S. - 0.5%-1% return on capital can be considered good in intraday.
Extended range - 19618/20003
Bearish Harami formed in the previous session was negated today by a bullish hammer. The volumes are slightly better than yesterday's session. We again saw Indiavix cooling by another 3.5%. All these indicate a restricted downside. Nifty took resistance at the middle of the newly identified upwads channel. No major red flags today. We have seen stock reacting to results after a day or two. If HDFC Bank runs tomorrow, we have see shosrtcovering in Nifty post 19850.
Possible trade: Risk reward ratio is in favour of bulls. You can do long with low of 17th Oct as SL.
P.S. - 0.5%-1% return on capital can be considered good in intraday.
Comment:
Correction: Incorrectly stated candlestick pattern of 16th Oct as Bullish Harami, while that is actually a Bearish Harami pattern. The analysis is correct, just that the terms switched verbatim - Please ignore the slip of tongue.
Comment:
Global events overnight may change the upward texture for Nifty today. Follow the buy on dips strategy, unless 19650 is breached on the downside.
Trade closed manually:
Though Nifty closed within bottom of day range 1 & 2, the view of an uptrending day completely went wrong today.