NIFTY 1D - Abandoned Baby

NSE:NIFTY   Nifty 50 Index
A bearish abandoned baby is a specialized candlestick pattern consisting of three candles, one with rising prices, a second with holding prices, and a third with falling prices. Technical analysts expect that this pattern signals at least a short-term reversal in a currently upward trending price.

Significant reduction in relative strength index

Except Reliance Industries, PSU stocks, Oil /Gas stocks, broader sector Index stocks' strength weakening.

Overhang of correction in stocks of Bank Index / Financial Services Index, may make Nifty print lower reading in spite of support from Oil & gas / Energy / Auto.

Going long on PSU , Oil & Gas, Energy, Auto with hedging of Short Nifty / Short Bank Nifty . . . .


abandoned baby or adopted baby, selling with bearish engulfing on 22 DEC and then pre-budget and now this yesterday, all really means nothing, yesterday FII made full profits, but no way in hell BEAR market will start until US fed increases Interest rates which is set to be mid-2022, bond yields rise is the reason for this fall but it will be absorbed by next 2-3 weeks of consolidation, untill we decisively give close below that "RED line" consider this running good correction
+1 Reply
kartikbhai Kakerot
@Kakerot, What has already occurred, can't be defied - we need accept and absorb it's effect. And wait for what is yet to come as expected / predicted - say something in 2022 or 10Y level in 2-3 weeks . . .
While appreciating your technical analysis, there seems to be Set of Group or Set of Market Operators, who is manipulating the SENSEX and NIFTY Levels. Just based on Statements from FED and FM of India, can Economic Conditions OR Fundamentals change Overnight. The Market closed with High Valuations of PE over 40+. Then, suddenly, did Ground Situation change in ONE Day to bring down Markets by nearly 4%.
Do you have specific recommendation whether to go Short or Long for Weekly Expiry of 04-MAR-21 on NIFTY and BANKNIFTY
+1 Reply
ckirtane sathys
@sathys, can go long in nifty for 14900 till expiry 4.3.21.bnf is comaratively weak.still can go to 35750.
@sathys, (a) Manipulation may be feasible in a neglected stock, often lower-priced with lackluster trading volume and an uninteresting chart pattern. Doing that to all 50 stocks of an index, just to keep Index's needle at desired level by a group, is nearly impossible. Trade value of these 50 stocks on 26-Feb was touching $9 Billion. Manipulation of Index that way is Psychological aberration of a trader in a reaction when Index does opposite movement than trader's bias.

(b) About economy, valuation, opinions, sudden move. We can related B Graham's “In the short run, the market is a voting machine but in the long run it is a weighing machine.

(c,) If you google or refer a book, it replies your query to go Short or Long after formation of Abandoned Baby. Real point is, should we follow Text book Therapy or recommendation or opinions or personal bias. That makes all the difference. Personally I follow text book, and hedge with opposite direction trade which exhibited opposite direction Relative Strength.
sathys kartikbhai
Yes, your points are reasonable and makes sense. Thanks for your time. As you mentioned, yes it is from the classical Text book approach. However, the point is (b) - in which there is a role played by Operations including FIIs. Otherwise, it makes no sense to explain why there should such immediate opposite stances by operators and FIIs.
Seems sensible
kartikbhai subramanianh
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