Tuesday, April 9, 2019

Nifty: Bollinger Bands® Impulse rise and Channels! What is next?

Nifty had continued to move precisely as we have been expecting. Prices after reversing back from life time high levels of 11760 are drifting lower. See the application of Bollinger Bands, RSI and Channels in below research.
In daily equity research report we have been mentioning that Nifty will move within the range of 11550 and 11760 levels and prices behaved exactly as expected. See yourself below chart with Elliott wave impulse pattern, Bollinger Bands
Nifty 60 minutes chart:

Following is mentioned in the research before equity markets opened:
In the previous update on Nifty we mentioned, “The trend for Nifty might continue to remain sideways with the resistance placed at 11760 and the support at 11550”. BANG ON! Nifty moved precisely as expected, found support near 10550 levels and bounced back. 
In the previous session Nifty opened on a flattish note and immediately posted a high at 11710 and had a slow but steady fall throughout the trading session pushing the prices towards the support level of 11550 that we have been mentioning in the previous updates. Mild buying came in at 2:40 PM due to which slight retracement was seen towards 11604. On the sector front we saw all 10 out of 11 sectors compiled by NSE fall led by Nifty Realty Index which ended with a loss of 2.19%, the only gainer was the Nifty IT index that ended in the green with a gain o0f 0.66% as the USD strengthened against the INR. Reliance industries and HDFC bank were the draggers. 
On the daily chart (shown in actual research report)……… 
On the hourly chart we can see that prices are probably forming minor Flat correction pattern. Bollinger bands are working extremely well and the lower end of the bands provided supported yesterday. Let us see if prices can now move towards the upper end of the band near 11700 levels. Break below yesterday’s low will drag Nifty towards …….. levels. As long as 11500 and 11760 is protected range bound action can continue. 
The above clearly gives the important range one has to keep in mind and trade accordingly. Also we are giving Intraday calls on Nifty and Bank Nifty. Following is a sample of Bank Nifty call given based on many of the above discussed methods. 
8th April 2019 12:14 pm - BANKNIFTY FUT SELL BELOW 30221 SL 30416 TGT1 30124 TGT2 29928 
8th April 2019 01:28 pm BANKNIFTY FUT SELL CALL GIVEN TGT1 ACHIEVED AT 30124 
8th April 2019 02:21 pm BANKNIFTY FUT SELL CALL GIVEN TGT2 ALMOST ACHIEVED AT 29932 
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