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Saturday, 4 June 2016

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:

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!!

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

We posted in our last weekly update on Banknifty on 16/05/2016 that

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.

And also

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

Now see what happened in the below daily chart of banknifty:

Banknifty Daily Chart

This is a clear breakout of Banknifty trading well above the falling broadening wedge pattern (blue lines). Now let's analyze Banknifty for the coming week.

Bullish Possibility:

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

Bearish Possibility:

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 above the upper blue line of the falling broadening wedge pattern.
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:

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!!

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

Bullish Possibilities:
Last week we mentioned that,

Quote
As always we start with Bullish Possibilities. though 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.
....
So next week is trend deciding week for tatamotors. If this open lower and trade lower then quite possible that this will visit 393-400 in short term
Unquote:

So tatamotors obliged we short traders by providing some quick money and visited till 380.1 odd levels but bounced back nicely on last two days to close at 398.7. The bounce is quite obvious as we mentioned in my last post (summary) that it is in purely consolidation zone currently hence such a bounce is quite natural. Now let's analyze what this stock has in it's store for this week.

Tatamotors tata motors stock chart Hourly

Tatamotors Hourly chart

As can be seen from the hourly chart tatamotors has broken down the rising trend channel and has found support at 380 which was earlier resistance zone. After the straight fall from 421 to 380 this has bounced almost 50% of Fibonacci retracement and currently dealing with 400 level by closing at 398.7 odd levels. 400 was earlier support and hence expected to be a resistance now for this stock. If able to move past 400 could find 416 as the next resistance level. Breakout above 416 will trigger the ultimate target at around 600 because of the W pattern mentioned in my previous post.

Bearish Possibilities:

Tatamotors Weekly Chart

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.

Summary:
1) Till tatamotors is below 416-431 and above 360-368 it is purely in consolidation zone for positional traders.
2) Below 360-368 it is only sell.
3) Above 416-431 it is only buy.
4) In consolidation buy the dips and sell the tops.

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!!

How to trade Tatamotors for week starting 02/05/2016

Bullish Possibilities:
As always we start with Bullish Possibilities. though 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. But above 431 this stock can move close to 600 odd levels as mentioned in that post.

As can be seen from the weekly chart of Tatamotors, this stock is trying to form a W pattern and within the upward channel. So once this resistance zone (416-431) is concurred this stock can target 600 levels in medium terms.

Bearish Possibilities:
As mentioned in my last post.
Quote
we are almost done with the immediate up move and can start a down move at any moment although whipsaw at this level is quite natural.
Unquote
And we saw tatamotor put a red candle on weekly chart last week and on Daily chart Friday close is just on/ below the ascending channel.

So next week is trend deciding week for tatamotors. If this open lower and trade lower then quite possible that this will visit 393-400 in short term as can be seen from the below hourly chart.

The last hope for bulls comes at 360-368 support zone.

Summary:
1) Till tatamotors is below 416-431 and above 360-368 it is purely in consolidation zone for positional traders.
2) Below 360-368 it is only sell.
3) Above 416-431 it is only buy.
4) In consolidation buy the dips and sell the tops.

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 developingresistances 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!!