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Staying Below 9400 Bearish for Nifty. Stay Alert.

Major trend reversal possible below 9400. 

Bounce from 7500 to 9385 appears to be corrective in nature and Possible Triangle pattern as mentioned in Previous updates.
Today it looks like that Wave e of Triangle pattern about to finish or finished already at 9375( day high).
Here, we have two possibilities for nifty outlook.

i). Failure to cross above 9400 resistance level implies that Triangle pattern in force and can take U-turn any time from current levels towards 8900-8800 positionally.

ii). In case, Bulls succeed in breakout 9400 level implies that nifty can test 9600-9700 on upside Before taking U-turn.

Hence, watch 9400 spot level and trade accordingly.

Most preferred View: As per technical charts, a series of negative divergences at resistance levels indicating that most preferred view is triangle pattern about to complete its pattern and downtrend can resume soon.
Keep 9450 as stop loss for short-selling positions for low-risk entry for targets 8900-8800 zone.

Option data also …

Crucial supports held. Means, decent pull back rally t0 9350-9430????

Nifty faced resistance at 9300 levels as mentioned in the last update but bulls succeeded to hold crucial supporting trendline at 8900 levels around.
By looking at the latest data, nifty can climb again to 9350 levels from current levels, provided 8900 support holds.
Hence, avoid fresh short selling as Counter trend wave still in progress.
Unless nifty breaks down 8800-8900 supporting trend line, short term trend remains UP.
Pharma stocks and the Metal stock looks attractive at current levels. Selective stocks can be taken long positions for short term trading purposes.

Resistance 9200-9350.
Support 8900-8850-8800.

Regards,
Suryadev Bandari
Research Analyst

Hanging Man pattern at Resistance, alarm bell for Bulls.???

As mentioned in the last update, 9350 remained a crucial resistance and 9020-9000 as a crucial support zone. As we can see in the chart that, bounce from 8000 to 9315 appears to be in Diagonal pattern, minor waves overlapping each other. This pattern is definitely a counter-trend pattern only.

On Friday, nifty recorded high at 9315 and from there profit booking started and drifted to9092 before bounced back to 9291.

In daily charts, the Hanging Man pattern formed in Nifty. Indication of possible trend reversal. We need to look for confirmation of price action today. Friday's low 9092 if breaks down, then we can get confirmation of trend reversal in short term point of view.

Close below 9092 gives us confirmation of trend reversal.

On the flip side, holding on to 9092-9000 zone means one more attempt to 9350-9435 is possible as the final push to upward.

Trade accordingly,

Resistance 9350-9435.
Supports 9092-9020-9000.

Regards,
Suryadev Bandari
Research Analyst




watch 9020-9000 keenly.

Close below 9020-9000 support zone means, major down trend resumed. Hold long positions, only if nifty stays above this support zone.
Below 9000 support, more downside pressure in market.
Regards,  Suryadev Bandari Research Analyst.

Counter trend upmove still in progress. Upside can test 9350-9560.

There is no change in the Major trend(Downtrend).
In a shorter time frame, counter-trend up move still in progress, not completed.
Counter trend wave pattern has 2 possible formations at the current scenario as marked in the chart.
One is the triangle pattern in which wave e is due to complete. which can take a u-turn from 9350 around.
The second possibility is an a-b-c zig-zag pattern, in which waves a and b completed and wave c is due to finish, in this case, it can move above 9350 and can test even 9560-9600 zone.
Hence, for the short term time frame, watch 9350 levels keenly, if nifty moves above this level, then it can bounce up to 9560-9600 zone.
on the flip side, in case nifty take U-turn from 9350 levels, then we should watch 9020 spot levels to get confirmation of trend reversal to the downside.

On the whole traders and investors need to watch 9350 levels on the higher side and 9020 levels on the lower side to take fresh trade according to market momentum.

Resistance 9350-95…

As expected, Nifty moved towards upper resistance 8900-9200 zone from 8100 level.

As per the last update, nifty exactly bounced back from lower levels 8100 levels to upper resistance zone 8900-9200 zone.
Triangle formation can complete anywhere between 9100-9350 zone.
After the Triangle pattern, Major trend resumes which is Downtrend. 
Hence, Traders and Investors who bought long positions at lower levels around 8100 level, book profits fully at current levels 9070.(CMP at the time of writing this update).
Pharma and Banking stocks witnessed decent pullback rally. Book full profits in them.

Nifty can take U-turn and can resume downtrend anytime from here. 

Avoid building fresh long positions. 
Bears can strike again at 9100-9350 zone.
trade accordingly.

Regards,




Suryadev Bandari
Research Analyst


Triangle formation still in progress. 8900-9200 upward resistance.

Nifty still in a triangle formation and wave e of the triangle is due as per updated pattern.
The minimum upside for the short term is 8900-9200.
Avoid fresh short selling at this juncture.
Pull back rally is due.
Supports can be found at 7700-7500.
The range is Huge, so risk also high.
Private sector Banks also completing triangle like formations in their respective charts.
We can see some short term buying in private banks at these lower levels.
Trade accordingly.
Regards,
 Suryadev Bandari
Research Analyst