How to trade Banknifty for week starting 06/06/2016

Bullish Possibility: 

Last week in Deb Trades we mentioned that, 

As can be seen from the above chart till Banknifty is  trading above the upper blue line bulls are safe. The first support zone is at 17442-17302, next 16997 and final support zone is at 16343-16197. Targets are as marked on the chart, 1) 18036 2) 19041 and 3) 20553

Last week Banknifty opened at 17581 made a low at 17350, high at 17762 before finally closing at 17681. Hence a weekly gain of just 100 points and a range of 412 points. For ST positional traders this is a range move.

Now let's analyze Banknifty for this week.

Banknifty Daily Chart

As can be seen from the above daily chart of Banknifty, it is clearly moving in an ascending channel (black lines) and the targets are as marked on the chart, 1) 18036 2) 19041 and 3) 20553 while supports lies at 17442-17302, next 16997 and final support zone is at 16343-16197.

Bearish Possibilities:

Same as last week:

Bearish possibilities are currently muted now as long as we trade above the upper blue line of the falling broadening wedge pattern (blue lines). But in case if we then the immediate target would be 16343 and 16196.

Summary:  

1) Banknifty is bullish still within the ascending channel.
2) The first support zone is at 17442-17302, next 16997 and final support zone is at 16343-16197.
3) Targets are as marked on the chart, 1) 18036 2) 19041 and 3) 20553

Final Words: 

If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column.

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How to trade Nifty for week starting 30/05/2016

Bullish Possibility: 

In our last post on Nifty weekly update we mentioned: 

if Nifty trades above the falling channel (blue) it will be bullish and can target the upper edge of the consolidation zone which is at 7972 approximately. A successful breakout above 7808 will result in targets like 8323, 8650 and 9191 respectively.

So let's analyze where we are now: 

Nifty Daily Chart

In the above daily chart of Nifty we are now trading comfortably well above the consolidation range (the grey area in the chart) hence the targets are now 8323 and 8650. Support lies at 7808 (the upper band of the consolidation area) and 7972 (which was resistance in the past). Hence play long with SAR at 7972. 

Bearish Possibility: 

Bearish possibility is muted currently as long as we are trading above 7808-7972 zone. 

 

Summary: 

1) Hold longs with 7972 as SAR with filter 20 points.

 

Final Words: 

 If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!

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How to trade Nifty for week starting 16/05/2016

15/05/2016 02:11 PM IST

Last week in Debtrades we discussed,

Quote:
Risk takers can take a long trade if Nifty move past the red resistance line next week. Currently the resistance is at 7713 but would suggest to go long above the break of the previous pivot at 7773. If long taken the position should be maintained with 20 points SAR. 
Unquote:

Last week Nifty opened at 7755, made a low at 7754 and almost immediately moved to 7773. The week high was at 7916 and closed at 7814.9.
Now let's analyze Nifty for this week. We will start with Bullish Possibility.

Bullish Possibility: 

Nifty Weekly Chart

As can be seen from the above chart Nifty is still in the consolidation zone (the grey rectangle) but last week Nifty has painted a bullish candle on the chart though has closed just at the blue resistance line. So for this week if Nifty trades above the falling channel (blue) it will be bullish and can target the upper edge of the consolidation zone which is at 7972 approximately. A successful breakout above 7808 will result in targets like 8323 and 8650 respectively.

Bearish Possibility:

Nifty Daily Chart

If Nifty fails to float above 7808 then could potentially target the lower edge of the consolidation rectangle which is at 7574. Also as can be seen from the above Daily chart of Nifty, it is currently in a corrective channel (red). If Nifty fails to move past the last week high of 7916 in coming sessions could potentially target the lower edge of the falling channel which is 7620 currently and this will move much lower as the time passes by.

Summary: 
1) Till Nifty is below 7972 it is in consolidation phase.
2) No long should exist below 7808. Hence use 7808 as the SAR for your position with a filter value of 20 points.

Final words: 
If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!

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How to trade Banknifty for week starting 16/05/2016

15/05/2016 10:45 AM IST 

In Debtrades last week we mentioned:

Quote:
A slight bullish possibility exists only if Banknifty breaks the falling red trendline. But that can not be confirmed till Banknifty is below 16922 or the top line of the blue descending broadening wedge pattern. So a bullish attempt can be made but only above 16400 not below it while keeping a close key on the key resistance level 16922. 
Unquote:

Now let's see now Banknifty performed last week. Banknifty opened at 16357 which is also the low of the week and zoomed in a second above 16400. The week high was 16962 just few points below 16972 that we discussed several times in the past and finally closed at 16716.9. 
Let's now analyze what's there in Banknifty Store for this week.

Bullish Possibility:  

Banknifty Weekly Chart

As can be seen from the above Banknifty weekly chart last week Banknifty put on a green candle on the weekly chart which is bullish but still trading below the broadening falling wedge pattern (blue lines) which is not good. So for bullishness Banknifty needs to trade above this blue resistance line which for next week lies at 16652 as can be seen from the above chart.

Bearish Possibility: 

Banknifty Daily Chart

 As can be seen from the above Banknifty daily chart, Banknifty has just closed at the resistance level (upper blue line) hence unable to float above the blue line at 16652 will result a down move initially to the green line at 16200 which will also be the Wolfe wave target as well and then to 15944 and finally 15673, the 38.2% Fibonacci retracement of the entire rise as can be seen from the below Banknifty Daily Zoomed chart.

Banknifty Daily Chart Zoomed

Summary: 
1) Play long with 16652 as SAR with 50 points filter.
2) Banknifty in consolidation move for the last 1 month, decisive move ahead.

Final words: 
If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!

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How to trade Tatamotors for week starting 16/05/2016

15/05/2016 08:19 AM IST  

In Debtrades, lastweek we discussed that,

Quote:
 In ST I do not see any bullish possibilities. As mentioned in my earlier post on tatamotors,  Tata Motors has a resistance at around 416-431 so until unless it move past this resistance zone no bullish possibilities exist.
.......
As can be seen from the above Tatamotors Weekly Chart, last week candle has fallen below the rising trend channel which is bearish and can target  368-360 in medium term. Though in short term this can be extremely turbulent because of consolidation as discussed earlier.  
.......
Till tatamotors is below 416-431 and above 360-368 it is purely in consolidation zone for positional traders.
Unquote: 

Now let's discussed how this stock performed last week. Tatamotors opened at 400.45, made high at 405.2 and fall to low at 376.1, finally closing at 389.95.

For this week lets start with Bullish Possibility.

 Bullish Possibility: 

Tatamotors Daily Chart

As can be seen from the above daily chart, Tatamotors is currently within the falling trend channels (red and green). So once it is out of the red channel the green channel will resist the up move.

Tatamotors Hourly Chart

The only hope for a small bullish move exists above 393 (red down trend channel) for a possibility of 412-416 as can be seen from the above hourly chart. At 412-416 it will meet with the green channel resistance so taking 393 as SAR with filter of 2 points, a small long position can be initiated for a target of 412-416. As discussed earlier, decent bull move only above 416-431 for a target of 600 in medium term.

Bearish Possibility:

Tatamotors Weekly Chart

As can be seen from the above weekly chart last 2 weekly candles has fallen out side of the ascending trend channel which is bearish.

Summary: 
1) Taking 393 as the SAR, with 2 points filter a small long position can be taken.
2) Below 393 tatamotors can target 368-360 which is very good support.
3) Decent bull move only above 416-431.
4) Till tatamotors is below 416-431 and above 360-368 it is purely in consolidation zone for positional traders.
5) Below 360-368 it is only sell.
6) Above 416-431 it is only buy.
7) In consolidation buy the dips and sell the tops.

Final words:
If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my master says, Get Rich Slowly and Quietly. Cheers!!

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How to trade Maruti for week starting 09/05/2016

Bullish Possibility: 
In our last post and earlier post, we discussed that,

Quote
Zooming on it's last 2 months chart we find that 3800 is a solid resistance from where it fall couple of time making this resistance a significant one. Now in coming week if this stock able to float above this resistance level then can move quickly to 4443 approx due to inverse H&S effect.
Unquote

Now let's analyze our Maruti position for this week.

Maruti Stock Weekly Chart

For the last couple of weeks Maruti has put on couple of doji signals on weekly chart. Doji signals indicated indecisiveness between bulls and bears and also some times indicate formation of tops. But the good thing is that Maruti still floating above 3800. So till this is trading above 3800 bulls are safe and look for first 4177 and next 4340 approx.

Bearish Possibility: 

Maruti Stock Hourly Chart

As can be seen from the above hourly chart of Maruti, this stock is some how managed to float above 3800 last week and if dip down below 3800 then could eventually target the lower horizontal support line of the consolidation rage discussed last week which also coinciding with ascending trend channel (green channel in the above chart) support line at 3600.

Summary:
1) Maruti is bullish above 3800. Above 3800 1st target 4177 and next one 4340 approx.
2) Maruti in consolidation range in 3600-3800.
3) Short Maruti Stock below 3800 with with SAR at 3800 + Filter. For Maruti I use 20 points filter value.

Final Words: 
If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!

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