Nifty: Why Nifty is Stuck in a moment & strategy to trade

NSE:NIFTY   Nifty 50 Index
CMP 10863

- one of the reasons can be explained with the help of EMAs

- when ever there is a wide gap between 50 day EMA & 200 day EMA it can be said that markets are in a trending market

- with the expansion of gap trend gets stronger & vice versa

- Since November 2018 there is hardly any gap between 50 day EMA & 200 day EMA & the result is Nifty is doing a yo-yo trade in a 450 point range not giving any sense of direction...


- look to sell close to channel top or buy close to channel bottom...

- exit trade if Nifty moves out of yellow channel & reverse the trade if it sustains beyond the yellow channel for 3 consecutive days

Take care & safe trading...!!!
Comment: we had mentioned to watch out for a sustainable trade beyond the yellow channel for 3 days.

What more on a day (Friday) when most of the world market were down 2% our market managed to successfully hold on to stay above the yellow channel for 3 consecutive days.
And Today is the 4th day and The result is in front of you. Any surprises with a 130 point rally???

Go ahead hit the play button on the chart and see it for yourself...

Charts do have a way to give us cues. Are you listening....???

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Take care & safe trading...!!!
Comment: Nifty
Cmp 11422

A stupendous 400 point rally in just a week's time... Channel breakout trade rewards handsomely...

Consider booking profits as per risk apetite for time being.

Time to short is still not right. The thesis being channel breakout has happened after a long 4-5 months and it may not fizzle out in 4-5days.

Also there is further scope of another 200 points on the upside even from current levels.

Rather look for buying opportunities if there are any dips towards 11260-11280 zone or REVIEW to sell if nifty sees resistance around 11600-11650 odd levels

Till then
Enjoy ur weekend... :-)

Happy trading....!!!


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