Last Price@9900@16th Aug2017
11th Aug2017, Dalal Street was bleeding & I was getting ready for a ferrari drive. It is extremely tough to control a ferrari or a prancing horse unless you are skilled enough to control & absorb the pressure of the game.
Trading in markets is almost like driving ferrari - if you know or visualise the path - it can support you but be ready to get surprised on the track as no one knows how the track or your ferrrari is going to respond to the situations next.
Getting goosebumps is very normal for regular driver but new ones have to control their emotions because of ups & downs in the process.
Trading Tools used
Chart Pattern- Head & Shoulder
High@10138 - Simple Wave Count 1-2-3-4-5
We are counting it as Wave 1-2-3 & the ferrari drive to 9900 as Wave-4 ( which I have taken as question mark- as we don't have any confirmation whether this ferrari drive is over or some part of the track is still left to be travelled).
If it is done then most likely it falls down in the 5th wave of the sequence which started from 10138 High- travelling atleast 9680-9700 Zone Next but only after getting confirmation.
Previous Update - 200 Points - A Ferrari Ride from 9700 to 9900
Previous Update - Driving skills shown on the track
Long Term Analysis@22nd March- updated at 9200 - we are looking for 10000 Next
Long Term Analysis - Can B-Wave End@10138- No Confirmation
Nifty after an explosive rally yesterday which we picked close to 9775-9780 for 9890 targets - is digesting the trending move.
Never ever trade side ways move or you get chopped in the market.
Trading opportunities -
Buy or Long Trade -Trading opportunity is buying above 9950 for 9985 Target & going above 9990-10000- It can take bears into trap as 10,000 is psychological level.
Buy close to 9885 -9900 zone if you see support or else buy in the range 9850-9875.
Target upside shall be 9950 -9985 & above 10,000 - one should hold as it will create panic situation for bears.
Turns exactly from day low@9884-9885
If 9885-9884 holds downside -it becomes double bottom for the next trading sessions.
Short Term Intraday Lows@9885 has to holded for any upside move for next session else on account of global markets we can see some pressure but downside move for 9700 or even lower is still not confirmed yet.
Gap down open for the day has indicated that we should look downside for a target 9680-9700.
One should look for a bounce to enter the sell call with strict stops above 9950.
Never rush for a trade & be cool to take sell when you get the bounce with stops above 9950
Taken support@9818 which was our entry level for harmonic structure earlier & we took short for intraday move few days back.
looking for a bounce & most likely gap down between 9885 to 9866 can offer resistance for the next trade which we should have for downside below 9818.
In simple words- looking to sell from the gap zone if gap zone holds as resistance & we keep a watch.
Staying below 9855 - There is a pressure on the index & an attempt can be made close to day low which is 9818
Risky Traders can get an opportunity to take sell for 25-30 points close to 9818 lows.
Made a small fall from 9848 to 9837 - It is very tough to take frequent trades unless you are skilled technician.
Risky Traders should close that small sell call taken @9847-9848
Fellow Traders I will suggest to sell from 9880-9900 with stops above 9950+ for target 9820 - 9775- 9755- 9710.
There is a double bottom & bullish bat so if 9818- 9820 is intact downside means if it supports then we look for 9855-9875 Target Zone upside with stops below 9815 - which will fill the gap down opening for the day & we look to sell again in the range 9880-9900 with Stop loss above 9950+ for target back again 9820-9775-9755-9710.
2 Calls for current situation:
Buying in the range 9820-9825 with stops below 9815 for target 9855-9875
Sell later in the zone 9880-9900 with stops above 9950+ for target 9820-9775-9710
Taken that stop & now closing this update.
Abhishek H. Singh, CMT
India Regional Manager
India Markets-BSE, NSE chat room- https://in.tradingview.com/chat/#b4sFOMIVqPkq8gfQ