BraViSa TempleTree-India Market Calls
- Thread starter d_s_ramesh
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NIFTY breached 5400 with strength, as the market moved past this very strong resistance the euphoria behind making a new 52 week high has made the Index close positive. Though the bullish trend continues, our daily NIFTY bull seems to be tired. The back of our Bull is broken when the Index brushed the value zone. The damage has been more visible, MACD lines and well as Histogram has retraced pretty strong bearish divergence.
While the Index made new high, histogram shows there is not much buying power. Next resistance at 5450, will our bull manage to cover the distance before it collapses head on? It remains to be watched.
Hourly charts made a robust bull move after giving a small dip into the value zone, which also made our carry on long position exit at minimum profit. The next up move was fairly strong to get all the four staged entries filled in a single hour. At closing price our combined long position is up close to100 points. Value zone moves up to 5360-5380, while our stop stays at 5371.50.
We will follow the trend as it goes and exit once our system generates an exit or a reversal signals. With the power that the market has taken off, it should continue at least for few more hourly bars. But, we have to note a point of dissent here. While the Index moved positive, the stocks which has taken the index higher are all non-trending stocks. A non-trending stock has the highest probability of snapping back to its range and giving back most of the accrued gains.
It is fairly bad to end with a sad note, but accounting for reality is good than repenting later. Thanks.
While the Index made new high, histogram shows there is not much buying power. Next resistance at 5450, will our bull manage to cover the distance before it collapses head on? It remains to be watched.
Hourly charts made a robust bull move after giving a small dip into the value zone, which also made our carry on long position exit at minimum profit. The next up move was fairly strong to get all the four staged entries filled in a single hour. At closing price our combined long position is up close to100 points. Value zone moves up to 5360-5380, while our stop stays at 5371.50.
We will follow the trend as it goes and exit once our system generates an exit or a reversal signals. With the power that the market has taken off, it should continue at least for few more hourly bars. But, we have to note a point of dissent here. While the Index moved positive, the stocks which has taken the index higher are all non-trending stocks. A non-trending stock has the highest probability of snapping back to its range and giving back most of the accrued gains.
It is fairly bad to end with a sad note, but accounting for reality is good than repenting later. Thanks.
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NIFTY gives thumbs down.
Daily chart of NIFTY gives a break after reaching 5450 resistance. MACD and histogram divergence checks in giving back all the previous days gains to close negative. Daily charts continue with bullish trend but with weakness. Value zone being at 5322-5271 there is all likeliness of NIFTY reaching into value zone which also rule as a congestion area.
Most of the heavy weights on the index have closed weak today except for few like LT, Relcap, BPCL etc., which have some strength.
Hourly charts which opened strong were not able to move past opening highs. NIFTY gave lower low with every passing hour to finally close signaling bearishness. Though MACD managed to give a new peak at the highs, histogram did not follow through. Final closing hour gives a new lower drift below zero. Our long position which gathered strong gains gave back all of it turning negative on closing.
Hourly NIFTY chart has given a sell signal, close long below 5376 and trade short. Stop is at 5418.50, add on to be done with an increment of 10.75 points lower with every entry. As the market closes at the lowest, any overnight negative sentiment on the global indices will give a gap down opening on the next session. This will add to losses on the long position.
Hourly NIFTY has a 60% trendiness which adds strength to the ensuing bearishness. We just follow the trend as it progresses.
Daily chart of NIFTY gives a break after reaching 5450 resistance. MACD and histogram divergence checks in giving back all the previous days gains to close negative. Daily charts continue with bullish trend but with weakness. Value zone being at 5322-5271 there is all likeliness of NIFTY reaching into value zone which also rule as a congestion area.
Most of the heavy weights on the index have closed weak today except for few like LT, Relcap, BPCL etc., which have some strength.
Hourly charts which opened strong were not able to move past opening highs. NIFTY gave lower low with every passing hour to finally close signaling bearishness. Though MACD managed to give a new peak at the highs, histogram did not follow through. Final closing hour gives a new lower drift below zero. Our long position which gathered strong gains gave back all of it turning negative on closing.
Hourly NIFTY chart has given a sell signal, close long below 5376 and trade short. Stop is at 5418.50, add on to be done with an increment of 10.75 points lower with every entry. As the market closes at the lowest, any overnight negative sentiment on the global indices will give a gap down opening on the next session. This will add to losses on the long position.
Hourly NIFTY has a 60% trendiness which adds strength to the ensuing bearishness. We just follow the trend as it progresses.
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