Nifty Outlook. Where are markets headed. Trading zones at these levels

Nifty futures have corrected sharply for the last few sessions. Some of it was triggered by a news based move and part of it coinciding with classical divergence patterns combined with price point analysis.

Here is a look at what has happened on the charts and where are we headed from here. NIFTY is approaching interesting levels here. Here is a look at the hourly charts of Nifty and an analysis of it.

NIFTY FUT SHORT TERM SWING CHARTS

Nifty has displayed a classical divergence pattern with RSI where RSI failed to make a higher high despite markets moving here. Once it failed to breach 6180 there was a look risk contrarian trade opportunity near that levels.

Since the crash that we witnessed post the RBI news NIFTY has been falling with a descending pattern across a channel. The channel low is now at 5840 zones.

The trading levels of 5840-5810 is also a support range to watch out for . swing wise this will be the key level to watch out for. This may provide a low risk contrarian opportunity.

A breach of that level can lead to a test of 5745 and 5640 on the lower sides. On the upside resistance remains at 5960 trading zones and any pull backs to that level will be resisted.

Only if NIFTY Fut manages to  close above that level can ensure a reversal of the down ward swing and a resumption of the upward move. 

Analyzing Options Distribution Data to identify market range for the series

As we near the end expiry of an extremely volatile month with a little more than a week to go. Options accumulation zones from here on can be a key indicator to identify where markets are headed.

Often combining one’s trading systems with options accumulations zones can give very good low risk opportunities of more confirmed trading levels.

Rules for understanding options accumulation:

1.    The significance of options trading zones accumulation will increase more towards the series expiry so consider this as an input only during the second half of the trading monthly cycle

2.    Identify highest zones of PE accumulation by volume. The higher the volume indicates more PE writing at those levels. This forms the base and is an indicator of support levels.

3.    Identify the highest zones of CE accumulation. Similarly they represent the CE writing levels and forms the ceiling or resistance for that series.

4.    Mark these levels in your charts and use them with your existing systems to take more confirmed entries.

So what is the current situation for Nifty Futures for August series

As always let the charts tell you lot more than the words:

NIFTY OPTIONS Accumulation data- 20th Aug-2013 View

Charts data interpretation:

1.    The highest PE accumulation is at 5300 trading zones indicating that this is a strong base and we may not go below this level on a closing basis for this series. Hence it can be used for pull back contrarian longs

2.    CE accumulation is distributed evenly around 5500-5700 zones indicating that at every level we will face resistance on the upside and at the same time this doesn’t present a clear picture at this stage for upside levels. The highest CE accumulation is at 5800 levels almost confirming that we may not breach that level on the upside and it will form a good SL swing wise for rises upto near that level.

The same technique can be used to analyze other index futures and stock futures for a ready reference and will help in one’s trading decision making.

NIFTY FUT tests Critical Averages on the downside. How to trade it at these levels

NIFTY FUTURE- review of 29^th July and Update for 30^th July

NIFTY Fut today cracked through 5900 trading levels today closing at 5870 odd zones. What is important about this level is that this is exactly the 100 day moving average for Nifty Fut. If not for anything just another psychological level for the markets.

 On the downside a break of this level can lead to a test of 5845 on the downside and below that Nifty Fut can slide to 5810-15 levels where it might find some swing support and show signs of pull back and profit booking for shorts.

A crack of that level on swing basis can lead to another leg of downside move.

On the upside immediate hurdle lies at 5900-05 levels and only clearing that we can see a positive bias in the markets. Until it trades below it expect bears to be in control and short on rise will be a preferred option.

Trading above 5905 NIFTY fut can head to 5930-35 levels on the upside where it will face severe resistance and may not just cross in a jiffy. Swing bulls will only be back above that levels.

Trading levels for the day:

POWERTRADE BEARS LAST STAND POINT OF THE DAY ----- 5930-35  sustaining above which it will target 5965,6005
POWERTRADE TREND DECIDER OF THE DAY ------- 5900-05
POWERTRADE BULLS LAST STAND POINT OF THE DAY------- 5870-75
Breakdown and sustaining below POWERTRADE BULLS LAST STAND POINT OF THE DAY will open target for support of ---- 5845,5810

NIFTY FUT Are You capitalizing on the volatility- With price point analysis

NIFTY FUTURE- Review of 24th  July and Analysis for 25^th July

Another massive gap in the opening session. How to deal with such gaps. The questions that crop up at the opening session for traders is to take a decision whether to follow the trend of the gap or look for a low risk counter move. Both are lucrative trading opportunities. In that case how to analyze in a quick move on which trade to take.

Well the answer simply lies in price point analysis and combining them with the trading levels.  We had mentioned in the previous session that 6075 will be the key level on the downside. Once markets opened and in the opening session it traded below 6075 where opening high was created at 6059 levels it was a signal where that level can be used as a stoploss for shorts and reversal above.

We had mentioned that the downside targets were up to 6005 levels all levels got done. But the star trade was with BankNifty futures which yielded near 150-200 points in a single session.

NIFTY FUT tested the levels of 5975 on the downside and managed to hold  that level witnessing a marginal pull back to close just above 6005 levels.

So what is the potential trade tomorrow.

6005-6000 will be the trend decider in true sense and markets will display a bullish nature if it holds to trade above that or a bearish nature below it. On the upside 6025 will form the immediate hurdle and clearing markets can move to 6045 levels and higher.

On the downside a below 6000 levels markets can retest 5975 levels and below that can slide all the way to 5930 levels.

Trading levels for the day:

POWERTRADE BEARS LAST STAND POINT OF THE DAY ----- 6045  sustaining above which it will target 6075,6110
POWERTRADE TREND DECIDER OF THE DAY ------- 6000-05
POWERTRADE BULLS LAST STAND POINT OF THE DAY------- 5975-70
Breakdown and sustaining below POWERTRADE BULLS LAST STAND POINT OF THE DAY will open target for support of ---- 5935,5895

NIFTY FUT Headed for Interesting Times ahead

NIFTY FUTURE- Review of 23^rd  July and Analysis for 24^th July

Yesterday we discussed that the key trading level on the upside on swing basis remains at 6075 and trading above that can head to 6110 levels. Today we saw markets gap up and move above 6075 in opening sessions. Once markets sustained above that it acted as a support and markets went to head and make a high just below the swing levels at 6107. This NIFTY FUT failed to cross but found multiple support in the 6070-75 zones to manage to sustain and close above it.

This will form as the support in coming sessions and any move below that will make the short term bears active from an intraday point of view. Below that level markets can move to 6035 levels or lower.

On the upside a clear of 6110-15 can mean a massive swing break out and can pull NIFTY FUT all the way up to 6220 trading levels.

On an immediate basis a clear of 6115 can take NIFTY up to 6135 levels and higher.

Why this is interesting is NIFTY today traded in a closed range and a move on either side would mean good high potential low risk opportunities for traders both intraday and swing players.

Trading levels for the day:

POWERTRADE BEARS LAST STAND POINT OF THE DAY ----- 6115-20  sustaining above which it will target 6135,6165,6220
POWERTRADE TREND DECIDER OF THE DAY ------- 6100-05
POWERTRADE BULLS LAST STAND POINT OF THE DAY------- 6070-75
Breakdown and sustaining below POWERTRADE BULLS LAST STAND POINT OF THE DAY will open target for support of ---- 6035,6005

NIFTY FUTURE- Review of 22nd July and Analysis for 23 rd July

NIFTY FUTURE- Review of 22^nd July and Analysis for 23 rd July

Dear all back after a long hiatus. Was travelling for a while and had taken a good break with family. Exciting news is that we have also been able to test our systems in complete automated mode over two different set up infrastructures.

Nifty fut almost created identical top today as yesterday and failed to clear that trading level.  The daily candle formed is not impressive enough and until the highs are not taken out the BULLS will again see some testing times.

On an immediate basis the Intraday trend decider will be at 6035-40 trading levels and clearing that level we may see more upsides to test the 6075 trading levels which will be a key hurdle on a swing basis.

Similarly on the downside sustained trading below that zones   can lead to a test of 6000-05 levels. On the downside.

Below that a movement below that may lead to a test of 5975 on the downside on a swing basis. On the upside swing wise a clear of 6075 can surge NIFTY all the way up to 6110 and higher levels.

Trading levels for the day:

POWERTRADE BEARS LAST STAND POINT OF THE DAY ----- 6070-75  sustaining above which it will target 6090,6114
POWERTRADE TREND DECIDER OF THE DAY ------- 6035-40
POWERTRADE BULLS LAST STAND POINT OF THE DAY------- 6000-05
Breakdown and sustaining below POWERTRADE BULLS LAST STAND POINT OF THE DAY will open target for support of ---- 5990,5970

Elliot wave and price projections at its classical best. What are the next projections?

NIFTY FUTURE- Review and Trading Analysis-21st June

NIFTY FUT –  marked the classical  Elliot wave and price projection reversal in the recent downmove.

While many traders would had earned trading shorts it is to take a worthy note on how Elliot wave projections gave an entry signal at much higher levels and how our traders capitalized on them big time.

Readers will recall that we posted the charts few days back (Refer to our blog chart analysis for 17^th June). We mentioned that NIFTY FUT has completed wave 3 and was marking a retracement on wave 4.

The beauty was that the wave 4 topped out exactly at 61.8% retracement levels giving an much earlier entry before the crash happened.

Yes the FED stand on QE made sure that global markets tanked big time and Indian markets were no exception too. Yes this help cover a huge range of wave 5 move in a single session 2. No denying the fact.  What we were expecting as a gradual downside move was largely covered today.

Now how price point analysis confirmed this. Refer to the same blog post. We had mentioned that while NIFTY FUT witnessed a strong island reversal pattern we mentioned that 5870 is the key hurdle on upside and only a clear of that will confirm as strong upside reversal.

Markets during the course of the week made a high of 5867.5; exactly below that level and failed to clear that zone on the upside. This confirmed a respect of wave 4 retracement too when 5835 was breached on closing basis.

Now where are markets headed from here? As we say one picture is worth many words and they always act as a ready visual reference to your trading.

NIFTY FUT CHARTS-20TH JUN CLOSING- SWING AND INTRADAY PROJECTIONS

Now Fut closed exactly at the first target of wave5 at 5640 trading levels. Below that the next swing projection is 5580 and if that is breached on a sustained basis we are looking at hitting near 5400 trading levels.

On the upside  On the upside swing wise immediate hurdle will be 5690-5700 trading levels and a clear of that will indicate some sort of reversal only.

From an intraday point of view 5640 will also act as a TREND DECIDER and sustaining below it shorts will be active again. Intraday reversal zone is 5670 levels  on the upside. On the downside expect support to emerge out at 5580 levels and a breach of that will result in fresh shorts.

Trading levels for the day:

POWERTRADE BEARS LAST STAND POINT OF THE DAY ----- 567075  sustaining above which it will target 5695,5730
POWERTRADE TREND DECIDER OF THE DAY ------- 5635-40
POWERTRADE BULLS LAST STAND POINT OF THE DAY------- 5600-05
Breakdown and sustaining below POWERTRADE BULLS LAST STAND POINT OF THE DAY will open target for support of ---- 5580,5535

NIFTY Fut Indicates Strong Reversal Pattern on daily Charts. Detailed Price point and Elliot wave analysis

NIFTY FUTURE- Review of 14 ^th June and Update for 17^th June

NIFTY FUT – marked a strong reversal pattern on the daily charts, typically a island reversal pattern where we witnessed a isolated low being made on the previous day.

With this reversal NIFTY FUT managed to pull back and close at near 5800 levels. Readers will recall from previous posts that 5760 was a strong swing level to watch out for on either side for BULLS and BEARS and this will continue to remain so. On Friday once markets moved above 5760 we saw a strong a continued upmove for the rest of the day as this level then acted as a support.

Now At this level there are two conflicting views as a swing traders and where markets may go from here. One an island reversal typically signals a change in trend and a new trend on the other side. Two at the same time we have seen a strong downmove and typically should see some resistance at retracements.

Check the chart  below which combines price points Elliot waves and Fibonacci retracement analysis to find the next trading level to watch out for.

NIFTY FUT CHART ANALYSIS-16 JUN

As it stands on the upside 5835-40 levels and above that 5870 will be the key hurdles and if we manage to clear that we can see a strong swing reversal pattern confirmation.

On the downside 5750-60 will be the swing support zones and a breach of that can signal a false reversal and lead to strong downside in coming sessions or weeks.

Based on this my idea to trade for a swing trader would be to look to long in retracements with SL and reversal below sustained moves of 5750 or a swing break out long with SL around 5800 if we manage to clear 5870 levels.

From an intraday point of view it is advisable to use the trading levels.

Trading levels for the day:

POWERTRADE BEARS LAST STAND POINT OF THE DAY ----- 5835-40  sustaining above which it will target 5865,5890
POWERTRADE TREND DECIDER OF THE DAY ------- 5800-05
POWERTRADE BULLS LAST STAND POINT OF THE DAY------- 5755-60
Breakdown and sustaining below POWERTRADE BULLS LAST STAND POINT OF THE DAY will open target for support of ---- 5730,5690

NIFTY FUT cracks 5855. Fulfils Downside swing targets. Trading strategy here

NIFTY FUTURE- Review of 11^th June

NIFTY FUT – Yesterday we had mentioned that 5890 was the key trading level to watch out for and that’s the level below which we have been asking to initiate short trades.

For two previous sessions this level was breached but managed to hold on with a closing basis. But the beauty of price point analysis was this level intact as trading level  and hence trades had to be taken.

Look at what we wrote:

POWERTRADE BULLS LAST STAND POINT OF THE DAY------- 5885-90

Once markets opened and traded below this level it was evident shorts would be the flavor of the day.  Since we saw NIFTY testing 5860 which was the swing level identified. Shorts were taken below that level and the result was precise trading and terrific swing moves getting done in a single trading session.

Apart from the profit the key take away from the trading has been despite two failed breakdowns it called for the trade to be taken for the sheer discipline of trading.

NIFTY had one of the most massive falls in the recent memory, cracking by near 200 points from the previous session and at the same time closing below the crucial 5800 trading levels.

Another important thing to note that we have been encouraging traders is to diversify their trading across multiple underlyings. This not only de risks the capital but also lets you at times hold positions on both ends. Like we capitalized on HCLTECH in longs since past few sessions and at the same time with shorts in ICICIBANK. This as a trader at times helps spread your risk.

Time your trades with perfection and high accuracy ? Trade with the specialists of the index. Check out our

Are you looking for complete guided trading without any hassle?.. Are you still worried about your trade entries? Are you missing on these turning points entries? How about looking at our points guaranteed services. …... Where to take the next trade? Did you catch the move in the right time?.... Are you still guessing where to trade? Subscribe to our premium calls and leave your trade entry and exit worries to us. 

NIFTY FUTURE- 12^th Jun Trading Guide

NIFTY FUT straight way drifted sharply once 5855 was breached to test the trading levels of 5800 and even closed below it. The fact that it closed on the lowest point of the day signifies that the BEARS are not done yet and may have some steam to go.

Where are we headed from here, where is support likely  to emerge.  On the downside next key support is at 5765 trading levels. This is somewhere we should see a pause and profit booking. If that level is breached we can see a further round of downside to test lower levels. This can lead to a test of the 5690 odd trading levels on the downside.

On the upside it is important for NIFTY FUT to move above and trade above the 5805 levels to show some resilience. But at this point all rise to 5835-40 levels should be shorted . That is the immediate level to be watched out for and would be good point to initiate long trades above that.

Trading levels for the day:

POWERTRADE BEARS LAST STAND POINT OF THE DAY ----- 5835-40  sustaining above which it will target 5865,5890
POWERTRADE TREND DECIDER OF THE DAY ------- 5800-05
POWERTRADE BULLS LAST STAND POINT OF THE DAY------- 5760-65
Breakdown and sustaining below POWERTRADE BULLS LAST STAND POINT OF THE DAY will open target for support of ---- 5730,5690

NIFTY FUT fails to clear our swing Hurdles. Project NIFTY Fut movement with accurate price point analysis

NIFTY FUTURE- Review of 10^th June

NIFTY FUT – Despite of a positive opening due to global cues market could not stay positive for more than 30 min of opening. As the market fell below the TREND DECIDER as mentioned at 5935 it just couldn’t  manage to hold above the level to make the positive trend. Market made a free fall to get some support at primarily at 5901 then finally getting support at 5890 levels at first half of the day, which we yesterday mention as the BULLS LAST POINT OF THE DAY.

Huge selling was been noticed during the last 45 min of trade when Rupee made its all time low of 57.95 per dollar. Nifty today made a lower low to 5867 but BEARS couldn’t manage to kept it below 5890 on a closing basis.

 We had discussed yesterday that 5855 trading level will be the key trading on a swing basis.

 For three consecutive sessions despite managing to breach below 5890 NIFTY has managed to pull back and close above that level.  Will we see a pull back from here or a breach of the swing trading levels. Read our analysis for the next session

Time your trades with perfection and high accuracy ? Trade with the specialists of the index. Check out our

Are you looking for complete guided trading without any hassle?.. Are you still worried about your trade entries? Are you missing on these turning points entries? How about looking at our points guaranteed services. …... Where to take the next trade? Did you catch the move in the right time?.... Are you still guessing where to trade? Subscribe to our premium calls and leave your trade entry and exit worries to us. 

NIFTY FUTURE- 11^th Jun Trading Guide

NIFTY FUT despite having managed to breach the trading levels of 5890 have managed to close above that in three consecutive sessions. The trading levels of 5850-55 are critical levels on the downside to watch out for.

On an immediate basis 5885-5890 still remain the support level but if break below we can see selling pressure intensifying. In that case NIFTY Fut which can move it again to the 5860 level where again we can see some support to emerge.  Breaking of 5855 can move the market to the low of 5830 level.

   On the upside 5935-5940 remain the immediate resistance on a swing basis and a long trade can be taken above it  with tight stops for the 5960 and higher levels where we can see some sort of resistance. Above 5965 level we may again see on a intraday move to 5990 then to 6005 level. Else this level of 5935 or at 5965  might provide good contrarian pull back trading opportunities.

Trading levels for the day:

POWERTRADE BEARS LAST STAND POINT OF THE DAY ----- 5955-60  sustaining above which it will target 5990,6030
POWERTRADE TREND DECIDER OF THE DAY ------- 5920-25
POWERTRADE BULLS LAST STAND POINT OF THE DAY------- 5885-90
Breakdown and sustaining below POWERTRADE BULLS LAST STAND POINT OF THE DAY will open target for support of ---- 5860,5835