In this newsletter read about probable move in Nifty and how high potential trades using Demand and Supply area can give us high returns with low risk.
Last week, I had indicated at downward movement in Nifty, once it reaches 7926-8002 area. As you can see, Nifty has given swift reaction from this area, to move down to 7781. This down move was supported by bearish sentiments in global markets.
What next? Is Nifty ready to move to recent lows of 7539 and then move much lower?
Technical Overview: Last week Nifty made high of 7979 and low of 7775. A range of 204 points. A pretty long red candle on weekly chart suggesting more pain.
Nifty has small support near 7739-7725 area. Next support is in the area of 7635-7539.
New resistance is formed in the area of 7922.
Nifty is in intermediate down trend. Now trading at the lower end of the curve (near earlier bottom). This bottom is near support of 7739. There can be some bounce from this level.
However, this market is 'sell on rise market'. Nifty may retest earlier low of 7635 if it breaks below 7725.
These levels are marked on the chart enclosed.
_________________________________________
For swing traders I run a portfolio in Stock Futures. Name of this portfolio is Prime Futures. Buy/ Sell decisions are taken by using Demand Supply theory. Demand zones are areas where stocks experience lot of buying and tend to move up. Similarly supply zones are areas where stocks experience lot of selling and tend to move down. These zones offer low risk and high reward high potential trades.
No comments:
Post a Comment