On 30th September 2019 Nifty opened gap down at 11,491 , made a high of 11,508 low of 11,390 and finally closed at 11,474. If you have seen our article top-3-secrets-of-price-action-trading-part-1 and traded on the strategy mentioned there, you must have made good profits by shorting Nifty and Bank Nifty.
Even though Nifty recovered from its deep negative zone , this still does not show bullishness. Rather it was just profit booking. Till the time we do not go above 11,550 on hourly basis trend will remain negative.
Nifty short term support stands at 11,400, which was today’s low also. On the higher side, 11,550 is a resistance.
As we can see from the daily chart of Nifty is above 200-day moving average and 50-day moving average. And the trend on daily is sideways. Nifty is near to a resistance trend line, and a gap up or a breakout above 11,550 with volume is required for Nifty to further rally.
In the hourly chart, we can see Nifty is forming a flag pattern and a break above 11,550 will confirm this view. So go long only if we close above 11,550 in the hourly chart
- Concor: Sell concor below 598 with stop loss of 612 and target of 570.
- BEML: Sell below 940 with Stoploss of 955 ND TARGET OF 900
Chart of the Day
The above chart is of State Bank of India, daily chart. It is at a major support zone, if it breaks this then we can see a further selloff in the counter.
Note: To get the live calls you can join our free telegram channel.
Please read the disclaimer before putting your hard-earned money.