Ichimoku & Renko Analysis on #nifty for 12th January, 2017
Nifty Commentary
The effect of 8300 being taken out was clearly witnessed today. A gap up followed by a very strong close has placed Bulls back in a comfortable zone. Technically looking at the ichimoku cloud, we can observe two important levels that could happen: Cloud boundary around 8400 (senko B) could act as a tough resistance for the Bulls for the day along with we haven’t seen Tenken Sen been tested ever since there was a bullish crossover of tenkensen over kijunsen. So most likely after hitting around 8400 mark, we could see Nifty moving down or pausing to hit the tenkensen(around 8250 – 8280); providing Bulls another opportunity to enter long. 8600 is on the cards for Bulls considering all positive indications we see on the chart.
Nifty Positional using Renko Model
Renko-100 has gained further strength as we got a close above 8300 mark as we discussed in yesterday’s newsletter. We have entered long territory as per Renko 100 model that we follow. As per R-100 model, this could reverse to sell side one we get a close below 8000 mark. Renko modelling that we use (R-100) has generated a Buy Signal on Nifty. As noted “After having witnessed a reversal trade during the month of December; 8000 and 8200 mark becomes most crucial in deciding the next trending phase in Nifty. Unwind your shorts and go long once we get a close above 8200 mark”. After two unsuccessful trades; this could be a trend setter for medium term timeframe going into budget session and state assembly elections.
Given below is our positional trade guidance as per Renko-100 for Nifty and Renko-200 for Bank Nifty.
Scrip Signal Date of Signal Signal Entry C.M.P. Current Position
Nifty (Spot) Buy 05-01-2017 8274 8380 +106
Bank Nifty (Spot) Buy 06-01-2017 18264 18830 +566
https://in.tradingview.com/x/gPSdyQq0/
The effect of 8300 being taken out was clearly witnessed today. A gap up followed by a very strong close has placed Bulls back in a comfortable zone. Technically looking at the ichimoku cloud, we can observe two important levels that could happen: Cloud boundary around 8400 (senko B) could act as a tough resistance for the Bulls for the day along with we haven’t seen Tenken Sen been tested ever since there was a bullish crossover of tenkensen over kijunsen. So most likely after hitting around 8400 mark, we could see Nifty moving down or pausing to hit the tenkensen(around 8250 – 8280); providing Bulls another opportunity to enter long. 8600 is on the cards for Bulls considering all positive indications we see on the chart.
Nifty Positional using Renko Model
Renko-100 has gained further strength as we got a close above 8300 mark as we discussed in yesterday’s newsletter. We have entered long territory as per Renko 100 model that we follow. As per R-100 model, this could reverse to sell side one we get a close below 8000 mark. Renko modelling that we use (R-100) has generated a Buy Signal on Nifty. As noted “After having witnessed a reversal trade during the month of December; 8000 and 8200 mark becomes most crucial in deciding the next trending phase in Nifty. Unwind your shorts and go long once we get a close above 8200 mark”. After two unsuccessful trades; this could be a trend setter for medium term timeframe going into budget session and state assembly elections.
Given below is our positional trade guidance as per Renko-100 for Nifty and Renko-200 for Bank Nifty.
Scrip Signal Date of Signal Signal Entry C.M.P. Current Position
Nifty (Spot) Buy 05-01-2017 8274 8380 +106
Bank Nifty (Spot) Buy 06-01-2017 18264 18830 +566
https://in.tradingview.com/x/gPSdyQq0/
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.