Nifty Weekly Technical Analysis for Week Starting 14 November

By | November 13, 2011

  Discipline – Majority of traders are not disciplined in their approach, else they would not be failing. These failed traders simply hate to hear the word Discipline! As Jack Schwager points out in his book, ‘The New Market Wizards’, “Discipline was probably the most frequent word used by the exceptional traders that I interviewed. Often it was mentioned in an almost apologetic tone: ‘I know you’ve heard this a million times before, but believe me, it’s really important’.”

Site is given a new Look Do let me know your feedback on it. It will help in improving the Site UI and content further.IF you are unable to see in Mozilla FF please clear your cache.

 

Nifty Hourly

On Hourly charts Nifty after Opening Gap down at 5158 made an attempt to fill the gap but got resisted at 5198.

Gap between 5212-5198 remains to be filled and mostly should be filled on Monday.

Hourly charts are oversold and bounce back is due which can take us back to 5250-57 on Upside. Breach of 5142 on downside can take us to 5109 5070 levels.

 

 

Nifty Daily

On Daily charts Nifty made a low of 5142 on Friday but was able to close at its breakout level of 5169 which keeps the Bullish hope alive as Closing at 5169 indicates strength in the market. Gap till 5198-5212 also needs to be filled.

Resistance on Upside will come at 5252-56 levels as these were the support before Nifty sold of in last 1 hour of trade on Tuesday.

 

Trading Concept:After every trending market we will have  trading market where market will frustrate traders by trading in a range for some time before giving a breakout on upside or downside.

Consider the above chart Nifty had a one sided rally from 4728-5400 in matter of 17 trading days. After such a big rally Nifty wants a breather but it should not be understood as correction.

Nifty will consolidate in a range of 100-150 points for atleast 5-10 trading days before giving a final breakout.

I have mentioned 2 scenarios in above chart where market rallied consolidated and finally broke on downside.

Currently Nifty if it keeps the low of 5142 next week we will enter a trading range of 5400-5142 which is 258 point range and i expect Nifty to trade in this range and make one more attempt towards 200 DMA.

 

Nifty Fibonacci Ratio

Nifty bounced from the 61.8% Fibo ratio  from 4728-5400 at 5147 on Friday. in Uptrend 61.8% and 50% Fibo ratios should always be bought with sl of 38.2% ratio

So we can Buy Nifty at 5147 and 5070 Sl becomes 4991 Tgt become 5258 which is 78.6% ratio

This is a good trade setup for Positional traders with good Risk to reward Ratio

 

Nifty Weekly

On Weekly charts as discussed in last week we had an inside day formation and Nifty below 5326 or 5200 should give at least 50 points move. Nifty did moves below 5200 but with gap down.

5169 has been resistance on Weekly charts for 12 weeks and same acted as support for Nifty last week as Nifty finally closes at 5169

Nifty Monthly

On Monthly charts Nifty took support at 5142 which is lower end of trendline which again adds to confirmation that Nifty has strength and buying is emerging on lower levels which qualifies for Buy on Dips scenario.

 

Nifty Trend Deciding Level:5169

Nifty Weekly Resistance:5227,5278,5326

Nifty Weekly Support:5142,5070,5016

 

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22 thoughts on “Nifty Weekly Technical Analysis for Week Starting 14 November

  1. Bramesh Post author

    Thanks Siva Sir..

    Appreciate your feedback.

    Rgds,
    Bramesh

  2. Bramesh Post author

    Thanks a lot Mahip sir..

    I am unable to update Nifty on daily basis because of Time Constraints.

    If you are interested to trade in Nifty using Intra and Positional system you can take my trading course.

    Rgds,
    Bramesh

  3. Mahip

    Hi Bramesh,

    Nice upgrade. I like the look and feel on the new site.
    I am a frequent visitor to your site for two reasons:
    1) Its simplicity in explaining concepts
    2) bcos i dont/cant do all the technicals myself and rely on ur analysis

    I really appreciate you putting in dedicated time for others to benefit. However, I would really like to see a trading call on nifty on a daily basis.

    Thnks,
    Mahip

  4. Bramesh Post author

    Dear Sir,

    OI gives you the range of Nifty in short term. For today if you see 5400 CE has highest OI and 5000 PE has higher OI so it becomes range for short term 5000-5400.

    Rgds

  5. Bramesh Post author

    Dear Sir,

    I took assumption we are in uptrend and i was looking for Fibo Extension above 5400…

    Please correct me if am wrong in approach

    Rgds,
    Bramesh

  6. VAIBHAV

    excellent design brameshji — realy fun to read and as usual i am eagerly waiting for your expert comments — i am presently studying co relation betweem open interest @ various strikes in CE/PE option chains — pls go thru the link –http://marketpulse-snp.blogspot.com/p/intra-oi.html — need your expert opinion — can u do me this favour — regards — dr vaibhav

  7. Fire

    Generally this kind of drawing gets used to get the Fibo. Extensions. That’s why got curious. 🙂

  8. Fire

    Ok Bramesh. Just thought for a moment that the Fibo. retracement is drawn on the chart in an opposite way. 🙂

  9. Bramesh Post author

    Thanks Sir..

    Do let me know any further enhancement required.

    Rgds,
    Bramesh

  10. Bramesh Post author

    Thanks Siva sir.

    I am passionate about trading and it keeps me driving ahead with site as platform to share and discuss my trading views.

    Rgds,
    Bramesh

  11. Bramesh Post author

    Thanks Sir,

    I basically use Fibo Ratio in Uptrend to Buy at 50% and 61.8% retracements and use 50% and 61.8% to initiate Shorts in Downtrend.

    Rgds,
    Bramesh

  12. Bramesh Post author

    Thanks sir for Pointing the mistake.. Typo has been corrected..

    Rgds,
    Bramesh

  13. Bramesh Post author

    Thanks Sandeep sir. Do let me know any more improvement required..

    Rgds,
    Bramesh

  14. Sandeep

    Hi Bramesh,

    You are a separate class to learn from. New look is awesome, esplly the article sections. Thanks

    Sandeep

  15. sreyO

    New look feels better. I think there is small typo in a level. it should be Nifty had a one sided rally from 4728-5400 instead of “Nifty had a one sided rally from 5728-5400”.

  16. Fire

    Bramesh,

    Nice look. Excellent analysis as usual.

    Could you please describe the Fibo. trading strategy in some more details? Its unfamiliar to me and definitely looks interesting.

  17. SIVAKUMAR

    For the last 6 months I am watching your updates. I astonish that how you find time to update such a lengthy, detailed and analytical updates. Really it is useful for me. I salute you and your knowledge. BEST WISHES for the pains you have taken to keep us informed. With regards, R.SIVAKUMAR.

  18. AKRAM

    You made changes to your website, its nice and looking good to browse.

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