Nifty surpassed the trend line that was connecting previous three highs since June 2019, this is a good sign of strength.
Keep holding longs, or utilise the dips to create fresh longs. also remember to use trailing stop loss or follow some indicators you are comfortable with. I recommend EMA on RSI as shown in the chart. (21 RSI, 9 EMA, 2 hours chart is a time tested combination for Nifty).
Tuesday, (Oct. 22nd.) when the market will open it will have qtrly results of Reliance, HDFC Bank and Axis Bank to react to. Nifty may open with a gap, probably on the up side. With the kind of FII / FPI buying we are seeing, there may be no significant correction in near future.
Today's closing was higher than the closing on Sep. 23, i.e. the day after corp tax cut announcement. 11695 was the high of Sep 23, probably that will be taken out on Tuesday. This all is quite positive and raises possibility of Nifty reaching 12000 levels or higher. Aim for higher profit / gap following the stop loss. Nifty is very close to the upper line of a channel, it may correct and come towards lower range anytime.
Despite all the positivity, it is so important to have an exit strategy in place, 11597 can be used as the trailing stop loss at this stage, this is the point on the trendline connecting previous three tops on daily chart - shown in black colour dotted line on the top.
----------- --------- --------- ----------- ----------- ----------- ---------- ---------- --------- -------- ------- ------ ------- -------- --
Repeating, this post does not encourage speculative trading, one must access his risk profile and consult his investment consultant before taking a call that involves such money.
----------- --------- --------- ----------- ----------- ----------- ---------- ---------- --------- -------- ------- ------ ------- -------- --
Please consider hitting the LIKE button on this post/idea, if you found it worthy, you may follow me over this forum for updates on Nifty, Bank
Nifty and Bullion.
Keep holding longs, or utilise the dips to create fresh longs. also remember to use trailing stop loss or follow some indicators you are comfortable with. I recommend EMA on RSI as shown in the chart. (21 RSI, 9 EMA, 2 hours chart is a time tested combination for Nifty).
Tuesday, (Oct. 22nd.) when the market will open it will have qtrly results of Reliance, HDFC Bank and Axis Bank to react to. Nifty may open with a gap, probably on the up side. With the kind of FII / FPI buying we are seeing, there may be no significant correction in near future.
Today's closing was higher than the closing on Sep. 23, i.e. the day after corp tax cut announcement. 11695 was the high of Sep 23, probably that will be taken out on Tuesday. This all is quite positive and raises possibility of Nifty reaching 12000 levels or higher. Aim for higher profit / gap following the stop loss. Nifty is very close to the upper line of a channel, it may correct and come towards lower range anytime.
Despite all the positivity, it is so important to have an exit strategy in place, 11597 can be used as the trailing stop loss at this stage, this is the point on the trendline connecting previous three tops on daily chart - shown in black colour dotted line on the top.
----------- --------- --------- ----------- ----------- ----------- ---------- ---------- --------- -------- ------- ------ ------- -------- --
Repeating, this post does not encourage speculative trading, one must access his risk profile and consult his investment consultant before taking a call that involves such money.
----------- --------- --------- ----------- ----------- ----------- ---------- ---------- --------- -------- ------- ------ ------- -------- --
Please consider hitting the LIKE button on this post/idea, if you found it worthy, you may follow me over this forum for updates on Nifty, Bank
Nifty and Bullion.
Trade active:
Surprisingly the FII buying for Friday was too small. The trendline breakout looks shallow, as per the rules of technical analysis it should go up by 1 % or close above breakout level for three days to confirm breakout.
Do follow the indicators or follow the stop-loss level for your long positions.
Do follow the indicators or follow the stop-loss level for your long positions.