Friends, the budget for this year is due on 1st February.
Also, we know the market is trading at a lifetime high and there is no point to
enter in short term trades like 15 to 30 days period. We are expecting one big
dip before the weekly trend line breakout.
In last week, Nifty has crossed its weekly trendline
resistance, but not closed above the same. In last week nifty has traded in
such a narrow zone of support and resistance i.e. 12300 to 12385. There are
three boring candles has been created in last week and that was the 50% signal
of a trend change. However, we were waiting for chart pattern confirmation and
today Nifty has given 100% signal of the trend change. Today market is opened
gap up at a new lifetime high and closed near day low. Now Bearish Engulf has
been created on the daily chart and nifty has broken down its important support
of 12300.
We are expecting more fall before the budget and the next
support is around 12150.
In last week, HDFC Bank has declared its quarterly result
and it was gain by 33%. That is the reason, today bank nifty is opened gap up
and given closing near Neckline Support i.e. around 31100. Yesterday in our
video we caught bank nifty before completion of Head & Shoulder and bank
nifty has done our wish on the first trading day. We can clearly see the same
chart pattern on bank nifty’s daily chart.
The current closing is exactly near support. If bank nifty
breaks and close below neckline support then as per H&S we can expect
levels of 30000/29500 in the coming weeks.
Click on the below links to join our Intraday Calls channel or details of our training program.
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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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