Ichimoku & Renko Analysis on #nifty for 12th January, 2017

NSE:NIFTY   Nifty 50 Index
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



Will you please share Bank Nifty chart also?
@venkaticr, I have posted Bank Nifty chart and analysis. I am planning for a PRO account here, once subscribed I will start posting individual stock charts. Thank You.
venkaticr pathiyil.praveen
@pathiyil.praveen, My views is stick to few stocks or options, viz. Nifty and Bank Nifty which gives normally 300-500-1000 points per week/month. But current entry and exit is important. For e.g. Nifty 7900 and Bank Nifty 17800 is a very good position when FIIs are selling. Now after minor correction, I think we should go long expecting results and budget. Your views please.
@venkaticr, I agree. I am bullish on #NIFTY and #BankNifty
venkaticr pathiyil.praveen
@pathiyil.praveen, Lets us wait and watch till Jan. 17 expiry.
What is the resistance for Bank Nifty. Today it touch 18900. Will it fall upto 18264 to resume upward till 18830?
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