Observe_Think_Act_Think

Observe_Think_Act_Think

Initial Scan Shalimar Paints appeared in the initial scan because 1. Strong close within the range of 4 days. 2. Liquidity criteria. 3. Strong gain for the day. Trade 1. It has broken anchored VWAP from the first significant pivot. 2. It has cleared the resistance zone. Management 1. Set the first target at 172. 2. Set stop loss based on close below 10 ema.

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Reasons to Short 1. Overbought - short term indicator RSI2MA2 2. In the resistance (Previous supply + 50% fib retracement) 3. Daily candle against upper BB 4. Not touching 5 SMA Target 5 SMA SL Previous High on closing basis

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Reasons to short 1. Short term overbought situation RSI2MA2 over 97 2. In the previous resistance zone 3. Candles above and not touching 5SMA Target: 5 DSMA SL : Break above resistance

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1. Bouncing off the monthly support line. 2. Showing strength by gapping up and holding the gap. 3. Large space for upward movement

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XLF Bullish view 1. False break of long term support on Monthly chart 2. 5 days in the bottom price zone against the downtrend. 3. Gap Up break form 5 days consolidation on the support.

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Context and current trend NIFTY formed higher high higher low formation for consecutive 4 days. It is just below the resistance zone 15880 to 15915. This zone has been tested 4 times so far. This time it may cross it decisively. Anticipating Thursday 1. Tomorrow is a Thursday expiry. NIFTY is likely to continue upward trend towards 15915 and may break it as...

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Context and current trend Monday 1 PM candle was strong selling move from 15770. But it could not break the low of Friday. Today when NIFTY gapped up again right above this selling, it was clear that the selling candle is negated. The additional confirmation came with small trap below the opening range. Then NIFTY closed near high of the day. VIX dropped...

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Context and current trend Reversal day on Monday. That means market opened gap up above high of Friday, but sold of sharply in the middle of the day. But this sell off could not break the lower boundary of the range. Its bearish but need to break below 15650. Anticipating Tuesday Expect for trend continuation or consolidation. Unless NIFTY crosses 15780, there...

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Context and current trend Let's start with monthly view. June month had a range of 15450 and 15915. So far, July has been trading inside this range. July candle is yet to complete but the shape of consolidation is not a pullback ( Lower low candle), but rather tiredness in the ongoing up move. Need 2%+ move this month to continue the strength in the uptrend....

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Reasons to take a short trade 1. Rangebound price action. Failed at the upper boundary 15875. 2. Strong OI buildup near 15800 CE 3. Lower high, Lower low and lower closing. 4. Closing near low of the day. Entry : 15686 (15850/15950 CE Spread) Stop Loss : 15860-15875 Daily Close above Hourly close above 15900, new high Exit : Target Achieved 15500 70%...

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1. Large hammer like candle shows emotional extremes. 2. Any trending move possible only when positions at these extremes gets taken out. 3. June 21-24 likely to be a second negative week. 4. On downside, I consider the zone of 15375-15425 as the possible support zone. 6. Stop loss for short positions should be close above 15684. There is a possibility of gap...

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Important question - Will this be a tradeable pullback? Tradeable pullback means lasting more than 2 candles, violating or touching at least one of the key support like 15500. Approach 1: Take a leap 1. Short tomorrow around 15800 with SL 15850 on closing. Approach 2: Wait for validation Validation points 1. Creates lower high lower low candles 2. ...

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Let's first review the current swing from 14151 to 15800. This swing is 8 weeks old without any significant pullback. It has covered around 11.5% in 34 trading sessions. It is in a significant resistance area 15800-158900. This is because this area has multiple measured move targets used by traders. VIX has dropped 37%. It created ATH after 103 trading...

Observe_Think_Act_Think Updated 

For tomorrow and possibly Friday my Bias is positive. 1. I closed my trade of 15500/15600 CE Credit Spread at minor profit. It was against the major trend so got out early at the target. I entered the same on signal of 8th Consecutive higher high. It worked and created a lower low. 13.85 points in 2 days. 2. Then at 13470, I entered two trades June 3...

Observe_Think_Act_Think Updated 

*** This is against the trend trade. Hence need to be very cautious with the execution and stop loss. *** Monthly view : 1) NIFTY has broken previous all time high and created new high on closing basis after 103 days. 2) Volatility is dropping significantly. 3) When this happened in the past, NIFTY did not race, but just consolidated with upward bias. I am...

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I exited my trade early for a small profit . 577 Rs that is 1.65% ROI on 35000 Rs in a day. Why I exited the trade? 1. Yesterday , my entry was pretty late in the trade from on daily timeframe. 2. NIFTY is forming higher high and higher low for last 7 days. 3. NIFTY did not move second leg after Gap up. 4. Profit taking before weekend is comfortable. What is...

Observe_Think_Act_Think Updated 

Bias for Friday: I expect positive day scaling to new highs. There is no real overhead resistance that I see. So NIFTY can jump the red zone very fast or consolidate a little bit. If it's a largely positive day, gap up 1%+ and then holding that gap for rest of the day, some mild profit booking is logical before traders on the long side take some profits before the...

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Considering the confluence of multiple signals, I bought NIFTY 13600 PUT. I'll hold it till NIFTY touches 21 EMA. NIFTY is closer completing 6th straight week of gains. 3 months without significant correction. New year and new series starting from tomorrow. Result season kicking off. And it may set expectations about future growth. Stop Loss :...