Nifty Ranges valid from 4th-8th June

NSE:NIFTY   Nifty 50 Index
Nifty Ranges valid from 4th-8th June. It is a wide range so trade carefully.

I have displayed 4 hour candles in the chart so the entire range is visible and yet the candle movement too can be seen on a day to day basis.

Also the Ichimoku Kinko Hyo should guide viewers about the bearish / bullish price action in the 4th-8th June trading week and accordingly set SL and targets based on the range levels.

As the week progresses you may have to press the <load new bars> button and adjust the zoom levels of this chart to clearly view the price action.
Comment: Do notice the last four bars in the chart.

The first and fourth are Dojis indicating consolidation which could lead to a breakout.

The first candle was a kind of Hammer which led to the next bullish candle.

But this was followed by the next candle with a similar top shadow and bearish. These middle two candles form a Tweezer Top followed by a Gravestone Doji.

This could indicate a bearish trend to follow.
Comment: The yellow stepped line is the 55 period Hul Moving Average. Currently it is below the price line so that is bullish. This is countered by the bearish candle formation I referred to in the earlier comment.

My advice is to wait for confirmation of trend with the breakout either below or above the Ichimoku cloud before entering a trade.
Comment: Nifty has now formed a triple top and the developing candle seems to be a bearish belt.

I have anyway been trading short since May 15th with regular profit booking. Currently short positions since 31st May.
Trade closed manually: Closed all shorts yesterday 5th May, because of the Hammer candle.
Comment: *Typo... it should read "Closed all shorts yesterday 5th June..."
Comment: I guess it now a time for caution. Tomorrow is Friday and next week on Tuesday the Kim-Trump talks start which could lead to unexpected outcomes.

The Bank Nifty candle structure in the daily charts looks like tomorrow will be a down day and that will affect Nifty as well.

And the Nifty daily candle seems to me to be something of a Bearish Evening Star indicating a drop in the immediate context.
Comment: These range levels are still valid for the next few days. Can be used to determine targets and SL.
Comment: Range levels still valid as on 21st June


Awaiting for your trading view on nifty for tomorrow. Being an expiry day for tomorrow BNF will be difficult to guess. However there might be chance that SBI, ICICI, Axis and big daddy HDFC along with Kotak will try to push BNF higher and may be there will be some upward journey on BNF for tomorrow. Do you have any chart for BNF in coming days?
fcsa Pranabkolkatay
@Pranabkolkatay, My Nifty and Bank Nifty Weekly level charts are still valid. However I will post a Daily level version in a bit since you want it.

fcsa Pranabkolkatay
@Pranabkolkatay, I have posted the Nifty levels for tomorrow which should be valid for a few sessions. But also check the earlier chart with validity from 4th-8th June.

I studied the Bank Nifty price action and feel that any of the previous 4-5 daily candles price action will not be reliable to select a Pivot and its derivations. So I had clubbed some of them in the earlier Bank Nifty chart valid from 4th-8th June and that should be more reliable. I have posted links below.
@fcsa, OK, Thank you
Today's trading experience. Many things happen in trading platform. Found spot nifty was trading at 10665. But my future lot was showing a constant value of 10648.for 15 minutes, a discount of more than 15points.. I had some intuition that unless I book my profit many traders will be stuck in price rise. So sacrificed and ordered to sell @10654. It executed at that price instantaneously and at a glance the price shoots to 10666.I know talking to broker about this is of no value. But when a tiny retailer buy future lot in the morning and stand brave without even bothering whatever happens in MPC/RBI meet, then big bosses shouldn't stop him to get little more profit. Trading platform is full of surprises. Anyway today was my 'first future lot of nifty long trading of the year' bought at start of trading and sold in profit. Surprisingly 10600 puts were heavily punished as if nifty is trending towards at least 10950 for June series and in that case 27500 bank nifty strike call for June 28expiry should be profitable. Squared off Maruti call options. BAJAJ-AUTO call taken yesterday gave very good profit in the morning. However I hoped for more. Did over trading through margin and lost 1000 rs there. I should avoid this kind of trading. I came out from call option of Maruti as I need some money to trade nifty /bank nifty future.
fcsa Pranabkolkatay
@Pranabkolkatay, I checked my Amibroker data feed... between about 1 and 2pm it was in a tight range around 10648. Then at 2pm there were two 1min candles with highs of 10652 and 10654.7 followed by a spike to 10669.4. Your trade probably fell in between these. But yes, I agree that sometimes the broker's software takes puzzling action. A few times I have been stopped out when the price never reached the SL level. It was a matter of few paise but my SL had not been breached.

Demat providers sometimes have serious glitches in their programming. About 2years ago our best private bank and our biggest IT firm collaborated to redesign their trading platform. It was a disaster. If you bought something in the futures market for say Rs100 and held it BTST, next day it would show that you bought it at less than 100 - say Rs98!! In fact I lost some money because I hurriedly closed some trades thinking I was in profit, without looking at my handwritten diary.

After observing this and many other glitches in the way the data was output I complained to the customer number. Of course they did not understand anything of what I told them. I sent a number of emails and so on. After a few days a bank executive called me and conferenced me with an executive from the IT firm. They wanted to know how I found the data problems. I had parsed their output data and have designed data validation procedures to check for anomalies. They wanted to know my procedures. I refused and just told them to figure it out themselves - if I could do it then certainly these highly paid professionals could do it. Eventually I stopped trading on their platform

We call ourselves an IT powerhouse but our software is very poor across the board. Basically we just provide cheap labour to western nations.
@fcsa,I was not at all eager to follow RBI news as my past experience indicate the FOMC meeting or Fed meeting has bigger influence on global market and so in our market. In fact it was almost known what will happen by market makers. In fact RBI meeting has least influence in Indian market, barring a few minutes notional spike here and there and I got the spike when Nifty jumped from 10442 to 10559 prior 12.00. Volatile nifty came down and remained virtually constant at ~10648. You have rightly said. But what I observed that spike happened in nano second the moment I sold. Today's close was my target also and I wanted to hold that. I have very less patience. However in between I sold my call option 10600 at 160 and covered the call at 131. Then there was again spike and it closed ~170.I was tempted to sell that at penultimate moment of EOT as my buy price was low but found 10600put has been punished severely. I bought one ~87. So let put and call fight tomorrow I will react on them as per market action. Also bought a bank nifty call 27500 of June 28 expiry with 2000rs at 3.29pm.
fcsa Pranabkolkatay
@Pranabkolkatay, These past few days I have stopped trading in Nifty and Bank Nifty. I cannot see any reliable pattern to decide on a trade. I have been trading in Jubilant Foods and Tata Global quite profitably in the futures market. The Daily charts for them indicate a clear trend. Today I am also analysing Titan and LT and am closely tracking Biocon after the drop.
A huge volatility is the part of nifty over past couple of days. A few stocks like TCS, HDFC bank, Hindalco, Maruti might try to push Nifty up tomorrow (looking at positive global market). However trade pattern as shown by you and this kind of volatility in nifty, generally indicates caution. Disclaimer. Holding one call each in TCS, Maruti and Nifty. Also holding one put each in Nifty, and in Maruti too. Future trading is now very expensive for tiny retailers. Today sold put (bought on 31st May) strike 10500 with profit.
Pranabkolkatay Pranabkolkatay
Bajaj Auto will contribute positively tomorrow on nifty irrespective of anything.