Nifty is getting ready to fly
On budget day during extreme volatility, I had shared some logics in a group that any panic in Nifty is a buying opportunity with 17350 as closing basis SL, Nifty dipped and made a budget day low around 17353 on that day.
Logic was
- On NF yearly chart, NF has not traded below its previous years opening price unless there has been real panic (like 2008 crisis or Covid crash etc)
- NF last years' opening price was 17387, hence anything near this price band is the best R:R trade as I saw on the charts. NF from there has made a high of 18100+ till now
- 17350 was also coming around a trendline support, if we connect ATH from 2021 to all the previous three tops which was acting as resistance line and NF broke it out and on budget day it retested that trendline, So from the theory that previous resistance became a support now
- Now what lies ahead, Nifty on the drawn pitchfork is taking support at 0.5 line after doing a 10% correction from recent top.
- From last three weeks, Nifty's opening is above its previous weeks opening price and is closing above its previous weeks closing price. (HH, HL setup)
- It has not broken its previous weeks low and attempted to give weekly inside bar breakout on closing basis. If we carefully observe the situation is very similar to what happened during Sept last correction and Oct first week, so
eventually Nifty is making another base here as it seems
Coming to daily tf :
Nifty on dtf has given a breakout of falling channel/falling resistance trendline and today's fall has retested that trendline. So, it typically looks like a breakout retest setup.
Coming to 4 hour tf:
Nifty on 4 hour tf is at confluence zone of support and resistance and possibility is that it will take support here and start moving upside to touch the upper resistance zone again before giving any breakout / breakdown.
In case of breakdown, downside support will be placed at Feb series avwap line, which is a dynamic line and will continue to provide good support.
For trading bets, high chances that puts below that avwap support may expire worthless :)
Overall, on small timeframe it will continue to remain in congestion zone but slowly and steadily market is moving upside unless some key important level are broken down.
Happy Trading
Attaching previous Nifty idea in related idea section.
Logic was
- On NF yearly chart, NF has not traded below its previous years opening price unless there has been real panic (like 2008 crisis or Covid crash etc)
- NF last years' opening price was 17387, hence anything near this price band is the best R:R trade as I saw on the charts. NF from there has made a high of 18100+ till now
- 17350 was also coming around a trendline support, if we connect ATH from 2021 to all the previous three tops which was acting as resistance line and NF broke it out and on budget day it retested that trendline, So from the theory that previous resistance became a support now
- Now what lies ahead, Nifty on the drawn pitchfork is taking support at 0.5 line after doing a 10% correction from recent top.
- From last three weeks, Nifty's opening is above its previous weeks opening price and is closing above its previous weeks closing price. (HH, HL setup)
- It has not broken its previous weeks low and attempted to give weekly inside bar breakout on closing basis. If we carefully observe the situation is very similar to what happened during Sept last correction and Oct first week, so
eventually Nifty is making another base here as it seems
Coming to daily tf :
Nifty on dtf has given a breakout of falling channel/falling resistance trendline and today's fall has retested that trendline. So, it typically looks like a breakout retest setup.
Coming to 4 hour tf:
Nifty on 4 hour tf is at confluence zone of support and resistance and possibility is that it will take support here and start moving upside to touch the upper resistance zone again before giving any breakout / breakdown.
In case of breakdown, downside support will be placed at Feb series avwap line, which is a dynamic line and will continue to provide good support.
For trading bets, high chances that puts below that avwap support may expire worthless :)
Overall, on small timeframe it will continue to remain in congestion zone but slowly and steadily market is moving upside unless some key important level are broken down.
Happy Trading
Attaching previous Nifty idea in related idea section.
أغلقت الصفقة: تم الوصول لوقف الخسارة
We got two close below 17350 ...for now view is invalid. Will review situation againتم فتح الصفقة
Well, my view was to buy any panic ...but possibly SL level was a bit miscalculated ... hence I also had a shakeout yesterday and closed this view. Today's fab recovery just tells ..how important it is to continue holding your view ...
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