Supply and demand zones marked on yesterday's chart hold good for tomorrow as well.
Black Line zones - Resistances
R1 - 19617-19639
R2 - 19723-19795
R3 - 19805-19822
R4 - 19842-19876
Green line zones - Demand
S1 - 19593-19574
S2 - 19555-19510
S3 - 19595-19462
S4 - 19350-19295
Analysis:-
Same as yesterday, Nifty has not moved majorly from yesterday’s OHLC. Hence Requoting “Nifty is in the process of forming a retracement, Lower High for the Downtrend formed. But if it moves strongly above 19684-19733 which is the 78.6% to 88.6% retracement levels of the previous major swing, which also coincides with the Gap supply zone and out of the falling channel that has formed, then there are high probabilities that the market trend would change to an uptrend.”
19530 will act as an important support level, for 2 days, the market has been taking support at 19530.
Trade Plan:-
If the Market opens a gap up –
1) Will look to short the market based on setup confirmation till the Gap filling / Trendline support/R1 or till 19530 based on price action and run further as needed.
2) Can go long only after consolidation breakout , but too many sell zones above, so may not be keen on this trade unless Nifty crosses and sustains above 19876 zone. Will watch for major resistance zones marked above – R2,R3,R4.
If the Market opens flat -
Will wait for Price action, may be a rejection at R1/TL Resistance again till 19530 or below or could be a consolidation again till 19530 and then move up.
1) Possible short scalp from TL rejection till 19530 based on setup confirmation or could wait till 19530 breaks and then ride till next support level of 19460.
2) Will go long only post consolidation breakout of the smaller TL that has formed today but would be cautious at the major Trendline above and also the gap supply above it, will be keen on price sustainability above the major Trendline till the gap zone of 19738.
If the Market opens a gap down -
1) Will look to short the market if any setup confirmation signal is obtained till the demand levels as marked based on where it opens either at S2/S3/S4 levels. Will be keen to short if there is a huge gap down at 19400 based on setup confirmation. If the price takes support, one may wait for consolidation up moves.
2) Will look to go long only if any setup exists post 75 minutes of consolidation/price sustainability at the higher levels from the Possible demand levels.
Please check
for Demand zones below 19200
Black Line zones - Resistances
R1 - 19617-19639
R2 - 19723-19795
R3 - 19805-19822
R4 - 19842-19876
Green line zones - Demand
S1 - 19593-19574
S2 - 19555-19510
S3 - 19595-19462
S4 - 19350-19295
Analysis:-
Same as yesterday, Nifty has not moved majorly from yesterday’s OHLC. Hence Requoting “Nifty is in the process of forming a retracement, Lower High for the Downtrend formed. But if it moves strongly above 19684-19733 which is the 78.6% to 88.6% retracement levels of the previous major swing, which also coincides with the Gap supply zone and out of the falling channel that has formed, then there are high probabilities that the market trend would change to an uptrend.”
19530 will act as an important support level, for 2 days, the market has been taking support at 19530.
Trade Plan:-
If the Market opens a gap up –
1) Will look to short the market based on setup confirmation till the Gap filling / Trendline support/R1 or till 19530 based on price action and run further as needed.
2) Can go long only after consolidation breakout , but too many sell zones above, so may not be keen on this trade unless Nifty crosses and sustains above 19876 zone. Will watch for major resistance zones marked above – R2,R3,R4.
If the Market opens flat -
Will wait for Price action, may be a rejection at R1/TL Resistance again till 19530 or below or could be a consolidation again till 19530 and then move up.
1) Possible short scalp from TL rejection till 19530 based on setup confirmation or could wait till 19530 breaks and then ride till next support level of 19460.
2) Will go long only post consolidation breakout of the smaller TL that has formed today but would be cautious at the major Trendline above and also the gap supply above it, will be keen on price sustainability above the major Trendline till the gap zone of 19738.
If the Market opens a gap down -
1) Will look to short the market if any setup confirmation signal is obtained till the demand levels as marked based on where it opens either at S2/S3/S4 levels. Will be keen to short if there is a huge gap down at 19400 based on setup confirmation. If the price takes support, one may wait for consolidation up moves.
2) Will look to go long only if any setup exists post 75 minutes of consolidation/price sustainability at the higher levels from the Possible demand levels.
Please check
Comment:
Please check this chart for details, Head and Shoulder pattern support broken. Very well worked as per our trade Plan, Nifty broke 19530 and then moved to 19460 exactly as per Trade plan - If market opened flat, Point number 1.
