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Shortsetup

How I identified today's 250 point fall and how you can too! Nifty larger sentiment was down, this was just a pull back in larger down sentiment. Nifty was moving in up channel, buyers expecting a reversal to 17800. Follow buyers sellers action and what their expectations are and when they will be in pain!! Check below chart for detailed analysis - 1. Buyers were buying along lower trend line in hope of upper channel at least since yesterday. 2. Sellers were selling along higher level of channel since yesterday. 3. Decrease in lower slope indicated interest or strength in buyers decreased. 4. Nifty unable to test upper level meant sellers becoming stronger continuously. 5. Buyers were getting weaker continuously, Sellers were getting stronger continuously and fight was getting concentrated. Finally sellers(larger sentiment) won and we had 250 point fall. Always keep the larger sentiment in mind, this up move was just a pullback in larger negative sentiment. After identifying the narrowing of range you could have traded in 2 ways - 1. Short in anticipation of larger sentiment continuation which was down with target - 17400, stop above 17600. 2. If you had no directional idea or bias then - Buy CE/PE of same price to use the range expansion after range contraction. So you could have made money even without knowing or caring about direction.👍
NSE:NIFTYShort
by NaveenGr
Nifty Caution: Danger ahead - Nifty could be attempting the Line of Support for the 5th time - the 2-3-5 Rule suggests not to Buy when it comes to the Line of Support for the 5th time. - Would it break??? Target for the setup in case we see a breakdown is mentioned in the chart. SL if the line of resistance is taken out ( red trendline) This is not an intraday view but more of a directional view in due course. Note our positions in Nifty has been taken earlier. You can go through my previous Nifty views to understand that part. Also, this is all about probability and not a necessity it would happen. So do follow your risk management measures. Trade accordingly. It's your money. Take decisions responsibly. Take care & safe trading...!!! Disclaimer - The view expressed here is my personal view - Past performance is not a guarantee for future predictions - Use this for educational purpose - Any decision you take, you need to take responsibility for the same - It's your hard earned money. Treat it wisely - Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance - if trading in F&O, understand that F&O trading involves risk - Do take proper risk management measures - Do your own analysis and consult your financial adviser if need be
NSE:NIFTYShort
by indiamarketoutlook