Category Archives: Nifty

#120 Nifty Update: PNR Status of Ticket to 4700:" RAC 3 "

Vacation time has started and many of you have booked your tickets ….so has NIFTY!! Your ticket to destination might be in waiting list but NIFTY’s ticket to 4700 is now RAC today which was in waiting list yesterday…That means we have got confirmation today that NIFTY is surely travelling towards 4700 but RAC 3 means we have 3 more hurdles on the way which myt restrict the travelling 1)4980 which has acted as the strong support since last  3 days (closing basis) 2) 4900-4920: Strong support levels on both weekly and monthly level 3) Not a technical reason but a imp one: USDINR chart suggests rupee strengthening ahead. Talking about the last three days, it has been a dramatics on the exchange. First day, we saw a 3 imp level breaking out i.e., triangle brkout, 100 SMA and 200 SMA. Second day we saw a gap down opening and thn last 2 hours saw 135 points recovery after the GAAR postpone to nxt year…but technically it was just a pullback to brkout level which was 200 SMA at 5114 (white line) . Today the final day we saw a heavy selling and all profits gained yesteray were wiped out. All funtdamental supporters and analyst were gvng tgt of 5600 yesterday after the GAAR but technically we got downside confirmation…..But its RAC and yet not confirmed 🙂 …Strategy : Hold your Shorts which i have initiated at 5170….

#119 Nifty Update: "Investors liquidate their position to buy Mangoes "

Mango season is here and i dont find any other strong reason fundamentally tht why we are seeing a sell-off in market. This may be due to the mango lovers gng for mango..hahahaha…But remember Maaza “haar mausam aam”?? ..So guys be in some liquid cash to buy at lower levels in coming months…Anyways coming to the point, it was a “Black Friday” as some may state for the investors on 4th of May. Many expertise  and analyst are of mood that market may bounce back from current levels but study of my technical analysis suggest that we are more biased on the downside for coming 2 expires. As i had mentioned about the descending triangle in last few months we ultimately got breakdown from neckline with Close that to a weekly and daily. Last friday’s close has made many technical analyst eyes wide open. Descending triangle is a bearish signal but this time it was formed after a rally and global markets were positive so we had expected triangle to give bullish breakout which it didnt. Yet WE HAVENT GOT CONFIRMATION of breakout but we can be biased on downside as per Triangle rule but we have seen all indicators turning negative last week. You may see on the daily chart as i have marked that there are 4 gaps which has been left in last rally. We may see atleast first 2 getting filled. But 4700 odd level is a strong downside tgt as its a formula tgt from triangle breakout an we also have the gaps around same level. But as per the retrenchment level 4900-4940 is a strong level for support so i am expecting minimum 4900 as the tgt on NIFTY. 
Stock Markets generally over the world tends to trade in a seasonal cycle which states that a bearish cycle from April-October and bullish from November- March. it generally means that we see a market low in April-October and high in November- March. That has exactly been the case in the markets this here. We saw a bull run upto march, April was consolidation and now month of MAY will lead to some downside unless a strong fundamental reason or some positive parliament outcome. But it does not mean we may see new low but we may witness bearish mood. 
What are positive for the Markets??
Surely there is some positiveness for the long term investors. As you could notice in the chart 100 SMA (red) has given a bullish crossover over 200 SMA (White) which is a buy signal but NIFTY is trading below that averages so be cautious. Fundamentally we have seen some outstanding results coming of domestically which is a good sign for industries. Notice that Consumer utility stocks are giving better result which is indeed the first sign of market recovering from the bottoms. In the US a article suggest that 98 out of 100 Metropolitan cities are witnessing a real estate boom as the finance and prices are at affordable rate then rent. So globally also we are witnessing a spark in household utility spending.  
Short players can go short with Stop loss of 5200
Long players: Long term investors buy 30% of the portfolio at 4900-4950 and rest at 4600 if that level breaks out on downside or at 5200 if we see a bounce back from 4900.

#118 Nifty Update: NIFTY on the Verge after Positive Breakout!!!

In my last post i mentioned that we were in consolidation phase and we expect a breakout very soon!!! Breakout has been confirmed last week and it was strictly to the principles of “Descending triangle”. Technically speaking, we saw a breakout on Wednesday on the upside from the triangle and for confirmation we got three consecutive close exactly above the trendline. Now resistance line has changed his role to support line as you could notice in the chart. Top first circle shows that NIFTY has been closing above trendline and short term moving averages for three consecutive days. Second circle , as i mentioned in last post, is a possible crossover of 100 SMA (red) over 200 SMA (white) after almost 2.5 yrs. So, NIFTY is on verge because traditional rules i.e., triangle breakout and moving crossover are almost signalling long term bullish while indicators have yet not confirmed the bull trend. What to do than?? Strategy as per my knowledge is starting buying longer term investment stocks and add on each dip upto 5200.Keep a stop loss of 5117 if the market goes worst. 1st Target on the upside is 5600 and second 6300 as per the breakout and triangle formula. A lot is based on monday opening. We are expecting a positive opening on Monday as Reliance industries posted results better than expected and some parts was in-line. So go long on NIFTY. Instruments to look for long term are Pharma sector and NIFTYBEES. Anyways will post you guys as soon as we get some more confirmation on the bull side.

#117 Nifty Update: Housefull 3 running successful over INDIA

Confused reading the Headline??? Hahaha… This time its not the Bollywood movie but its the NIFTY chart.  Reason for my name “Housefull” today was as you can notice in the chart the consolidation on NIFTY in the triangle is coming almost to the apex. This calls for a breakout on either side. For the people who arent aware, triangle is a consolidation pattern meaning trend haults on the move and continues the previous move. Our previous move in this case is bullish and as by rule we should witness bull run further. But all the rules are with exception or you can say with a risk. Triangle sometimes gives a reversal sign. Today D subbarao gave 50bps cut but still NIFTY couldnt cut through the triangle on either side. Global markets are mixed with cues on both side so fundamentally we are not able to decided the further move. Technically speaking we have chances of upside breakout at the moment. The indicators which i study have turned their hands towards bulls today. 100 SMA (red line) is approaching 200 SMA (White line) to crossover which is a sight unseen for last 2 years which is a strong bullish sign. Tomorrows session would be the crucial one technically. Our strategy would be to close ur shorts at 5320 on NIFTY which is a breakout point but only go long on confirmation level which is 5350 i.e., a rectangular breakout within the triangle. But look out for the close tomorrow. If the close is below 5300 than gates could open for downside. Add more shorts only below 5170. CAUTION for SAFE TRADERS: This time on markets is too volatile and indecisive so think twice before taking any position or wait for confirmation level. Indian markets always gives second opportunity so never feel left out. Ciao!!!!!! 

#116 Nifty Update" "Friday the 13th" for investors

It was nightmare for all the traders today on the Floor. Indeed it was the Black friday or you may say it proved to be unlucky 13th the Friday. Morning was greeted with below expectations INFY result and worst guidance by the company. Global markets were fairly strong almost 1% while SGX NIFTY was trading near to 5335. Pre-Open clearly suggested that we may see some pressure in the market due to INFY result but global market support would lead the market in positive zone. We saw the same thing happening, after being in negative zone, after 9.30 we saw market again in bullish mode. But as i had mentioned on my twitter @niftybykush 5305 was important resistance and so did NIFTY resisted near to 5306. At that moment investors thought that we were safe from unlucky “13th Friday” and than in just few seconds we saw heavy selling and NIFTY drifted to 5185 from high of 5306 in just 5 mins!!!! OH WHAT THE FUCK?? …….Even i dont know what was the case..But i feel it was the late effect of two major fundamental problem 1) Weak Infy result and 2) Revision of IIP numbers for Jan….How can a government make such a blunder?? FII were investing as they were positive on IIP numbers but that proved false numbers and may be we saw selling on that part today. Technically speaking , as u all can notice on the chart we are trading through a “descending triangle” which is a consolidation pattern and which means prior trend i.e., bull in our case will be back in action on breakout. But the indicator suggests that triangle may prove to be a reversal pattern which is rare but it can be true. If we see 5169 being broken than we can get 4663 on NIFTY. While on positive note we can see 100 may cross over 200 SMA which will be long term bullish and triangle will be given upside breakout at 5330. But taking support of indicators, i would suggest still hold your SHorts which i had recommended with stop loss of 5330. Add more shorts below 5146 and be long above 5360. Till than see ya!!!!!

#115 Nifty Update: How long can it be a "NAAR" Effect???

You might be laughing reading the heading that its GAAR and not NAAR. By NAAR i mean “NIFTY Accepted- Avoidance Rule”. This is to say because since the GAAR has been implemented, it was expected that market will see some sell-off but instead we have seen a rally of almost 5% on the index. This explain that NIFTY investors has accepted GAAR and have discounted the new well before. I do agree with it but you may find something interesting on the chart. Notice the downside channel. Today nifty has topped exactly at the resistance line and have closed with a Perfect Doji indicating that we may see some downside, if NIFTY cannot close above 5380 for nxt 3 sessions. This month is full of fundamental news with RBI policy on 14th, Parliamentary session on 23rd and Earning announcement. Technically Speaking we have seen a strong bounce back from 200 SMA (white line) on NIFTY. But you could notice that last rally has added 2 more gaps suggesting that NIFTY has to come back to that level if not in near term than may be some time in future. We could notice that short term moving averages (blue,green and Yellow) are near to 5285 which is also a important support level. NIFTY has rallied but none of the indicator which i study has confirmed the bull rally yet. Watching the events to follow this month it is expected that we may see a strong rally on either side from current levels. Strategy as per the chart would be going short at Current levels with a stop loss of 5420 on closing basis with tgts of 5285/5140/5050 4950-5050 is an important level to see because its the point where two lines of different valid channels are converging. And if the stop loss hits than you may go long above 5490 (closing basis).

#114 Nifty Update: "AGENT JAISWAL"

Today is friday and am sure all bollywood lovers will be waiting for the movie “Agent Vinod” starring hottest couple but market investors watched “Agent Jaiswal” starring other hottest couple, our coal minister and NIFTY. Since two days we are hearing some rumors rather to say media has got hold of some CAG report stating that government has lost some 10.76 lakh crore (approx figure) in allocating coal mines to pvt companies in last 8 yrs. But the “agent” (coal minister) denies the fact that its not the case. This has opened a gate for one more scam in india which might be bigger than 2G scam but nothing yet confirmed. NIFTY is ofcourse supporting the negative news. My last three posts have been suggesting downside and yesterday we got support from the scam rumor. Even the Europe and China’s PMI numbers have came at the lows in last 4 years. This has hurt the global sentiment and we may see some downside or correction for a time being. Technically speaking NIFTY yesterday supported our view for downside. As you can see in the graph , 2cd Sign of bearish engulfing was witnessed while NIFTY is not able to close above short term moving averages (multi Color) since last few weeks. All the indicators, mainly MACD has crossed central line to support downside. Even if we take the last rally from 4600-5570 , we are getting 5100 as a strong support. 5100 has also came out to be a important support on downside channel. So for NIFTY my negative view continous. Strategy would be adding more shorts below 5100 (My first call on short was at 5570 and we added more shorts at 5380)and stop loss in profit which i mentioned at 5470 in last post has been revised to 5400 on closing basis. Enjoy the movie and keep trading 🙂

#113 Nifty Update: Pranab "Mukher" gaya

NIFTY Shorts which i had recommend around 5500 it still holds. Budget didnt bring any surprises for investors rather it was disappointing if you analyze it properly. Pranab “Mukher”gaya apne vado se… He may have announced some good norms for mining sector but for overall public it was disappointment. Now they are thinking of reducing subsidy of fuel which indirectly will bring burden on retail users. Secondly, he has increased duties on vehicles which companies have proposed to pass on to the customer. Thirdly, 10% more increase in food price will bring 30million more indian below poverty line. Fourthly, inspite for easing FII entry it has made more difficult or more clause has been added which will restrict foreign entries. This was just the overview which i understood but if you ask Chartered Accountants they will answer you in more detail. Technically studying the markets, NIFTY was  in a downside channel even before budget day as i have marked above. Technically it gave a confirmation on close on budget day that it has more downside. HOW??? You could see that market closed below short term moving averages (multi color) on budget day and next day it opened and traded below that levels. So that was one more bearish side complimenting the channel move. But we may see final confirmation in this week when MACD which is at central line may confirm downside if we see some pressure tomorrow. I still recommend to hold your shorts of 5500 and add more shorts below 5156 which is the 200 SMA. Book loss in Profit on upside if market comes around 5380. Jai Ho

‎#112 Nifty Update: "When Simplicity Wins Over Complexity": Downside on NIFTY holds

On my last 22cd February post on NIFTY, I had given a SELL call on NIFTY around 5586 and had given 5 downside support out of which 4 has been achieved. Now you might be guessing about my todays title: “When Simplicity wins over complexity”..why so??? This is because of the complexity of news and results of election we had in the market but just one SIMPLE and common candlestick gave the sell signal and we could earn almost 400 points on shorts in 15 days. My last post didnt mention about indicators nor moving averages nor pattern it was simply 2 candles that gave a sign. But now we need to take some complexity into consideration to decide the further move. As you could see in the attached graph we had a consolidation phase between 5424-5280 which has been given a considerable breakout today. All the leading indicators have confirmed downside while NIFTY is hovering near to 200 SMA at 5165. NIFTY has given the close below all the short term moving averages. Now the downside support 5090 is a strong support for 3 reasons ..Firstly, it is a channel support line which was a resistance line for almost 1.5 yrs as indicated in yellow color. Secondly, 100 SMA is place at almost same level. Thirdly, if you consider retrenchment levels from last months rally 5090 is an important level. So for those of you have missed to short or have booked profits can again short at 5170 and blindly short below 5090. Levels below 5090??? will be on my next post…Till than Enjoy NIFTY in your shorts as its summer arriving….But keep pants will need it above 5424 (stop loss).

#111 Nifty Update: "Diarrhea" to NIFTY……

“Ohhhhhhhh……………….” No1 can control that motion ever!!! NIFTY was trading well around 5600 until it broke 5586 which i mentioned as a crucial level and than we directly saw 5490 odd level. i had been craving and shouting that Short nifty on each rise as 5640-5660 was strong resistance and i hope you all got benefit of the same.NIFTY has given a non-stop rally of 1200 points and we were expecting a correction soon. Indicators were already showing overbought condition but today for the first time candlestick has given some bearish sign. As you could notice we have witnessed a “Bearish Engulfing pattern” on NIFTY daily chart today which is a strong reversal sign for the trend. All the frontline stocks drizzled like one is having diarrhea…. None of the stock were breaking during the downfall. Tomorrow being expiry we may still see a volatile session. Tomorrow’s opening trade is gonna be a important one. But overall am bearish on NIFTY..NIFTY has strong support levels of 5424,5372,5335,5220,5095. On the upper side still 5660 is strong resistance level but i suggest to hold your shorts with stop loss of 5660.. Dont get into longs until some better confirmation.