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
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