NIFTY 26 MAY 2021 : Tussle to continue between bulls and bear near all time high

 

I can tell you that most momentum indicators would be running with divergence in shorter time frame and this can be impact of some gap trade. This is the characteristic of trade near all time high. two factors govern the trade - one is momentum (on hope of stimulus package) and divergence (may be due to unwillingness of participation of fresh bulls). 

Technical factors - Watch the formation of rising wedge on daily chart. This is concerning for bulls. No one can guarantee but it looks like that if it Nifty slips below 15100 by any chance and starts settling below 15100 then it may not be safe anymore. In alter sense 15100 is a decisive support and must be respected. 

One higher side, break above the given trend line can make us safer but that levels looks above 15325. 

I hope above study will help you to take trading decision. 

Happy Trading ☺

BANKNIFTY FUT 25 MAY : STRONG CAUTION ADVISED, IF IT BREAKS DAYS LOW.

 

DISCLOSER - I have some put option. 

NIFTY 25 MAY 2021 : Reverse H&S pattern is under confirmation. Can it challenge for New alltime high?

 

Yesterday's session was quite impressive although it has slipped from top. Well, whenever market goes near all time high, mostly it goes with divergence and its the same divergence which used to cause intraday dip. 

Another important point is this kind of moves cause lots of gap opening. Hence, this is for lion hearted traders. 

Any dip near 15100 to 15000 can be opportunity to trade long. 

Shorting???

One can get some intraday swing of 50-60 points but there is no point to short as swing traders. remember, momentum indicators will definitely show divergence but that is not the sign for shorting. One may observe such divergence mostly on hourly chart but ignore those. 

NOTE - unless market breaks trend line support, there is no point to go for positional short. 

Caution is always advised in such kind of days.

24 may 2021 BANKNIFTY FUT

 

Above is 15 Min intraday chart of Bank nifty fut. Once it start settling below 3800-34780, we can expect some dip. There is no point to short above support. 

Its a LION HEARTED trade for the day. 

I have 33500pe bought @ 113 on Friday and same qty added @ 48 today. It's a undesired averaging on resistance. Only good thing is that I added only a small qty deal.