Category: STOCK MARKETS

NIFTY UPDATE

Markets around the world in last 24 hours are struggling for sanity. As I mentioned in my previous post about the dominance of high frequency Time cycles which are making markets nervous. Specially in the second half of October. So far we are witnessing strong move on both sides but the thing which lacks is the sustained follow through in any particular direction.

If we analyse NIFTY components only 2 stocks are in bearish cycles. Else all stocks are cooling off after achieving their pattern targets. So Majority of NIFTY components are in zone of profit booking after a outstanding month of gains and before the outcome of Elections in US same going on in US aswell. Personally dont expect any dramatic fall or rise until market gets clarity from the Election Results.

As far as levels are concerned NIFTY is trading in defined range since 9 trading sessions. Earlier I gave target of 12160 which is still pending but would take some time to achieve. Because undertone of market is still positive. Downside is possible upto 11640 and 11520 in all circumstances 11500 should be protected atleast till 2nd week of November. A door of severe fall opens up only below 11500 on spot. Until it holds things are under control

Disclaimer views expressed above are personal. And are Subject to change with time. Any Trades taken with reference to above Analysis has to be at your own risk. Trading in Financial markets is always subject to risk. So dont forget to consult your Financial advisor before taking any trades.

View for Gann Traders

On Monday in my Analysis on NIFTY I mentioned few points which were suppose to be important for this week. The first point to consider was the low of last Thursday of 11661 on NIFTY. And the other point was about the weekness of the short term Price Cycle.

The first point to watch was the low of 11661 which wasn’t broken. If it would had broken then NIFTY was open for 144 points on downside. So the TIME Theory dint gave the sell signal. Now coming to the second point which was about the Price Theory. Using which the idea was to take a short trade in the zone of 11860 to 11880 with the SL of 11916 for the Target of 11570 and 11410 on spot. It gave an entry on Monday and Stop loss on Tuesday. So after Time The Price also rejected the lower prices. In the same Article I tried to explain why it is Important that Time and Price stays on same track to complete the rotation of the cycle. And this was the perfect practical example why the cycle wasn’t completed. Because there is a reason after every action or reaction in market. There were early indications that this cycle wont get completed but still the chance was taken

Going ahead more positivity is expected in markets but it wont be a smooth rally. In the 2nd week of this month NIFTY gave the quarterly as well as the monthly breakout above 11800 mark. The Target of this breakout is placed at 12160 on spot in coming weeks. But in between we may continue to witness voletile moves on downside. As we are witnessing now so be prepared for such moves. The technical reason for this is mainly because markets are juggling with 3 high frequency time cycles

The first cycle which is causing irritation to NIFTY is the 12 year cycle from the lows of 22nd October 2020 second cycle which is again making markets Nervous is the 33 year cycle for October 1987. And the 3rd cycle is the grand cycle of 91 years from the great depression of 1929. Coincidently the Anniversary dates of all these cycles falls in 2nd half of October. So these high frequency cycles are causing trouble to weekly and monthly cycles. So coming days and weeks would be very intresting for all of us as a student of Gann and the cycle theory

In my last post I mentioned on options spread. After that I get some genuine question of how sir Gann really traded options using cycle levels. Attaching a pdf written by sir Gann below

https://drive.google.com/file/d/13pyFE4u_ndvjT5yDhoHu95wq_d9vg2Ir/view?usp=drivesdk

View on markets

In my previous Article I mentioned about 2 major Gann dates with which Financial markets around our planets has to deal with. On Friday we saw market making an attempt of stabilising after Thursdays decline. The idea was to have a bearish view below a break of 11725 on spot. The level which was broken on thursday. And on the same day it made the low of 11661 on spot.

Going ahead this low would have a greater significance specially for this week because this low was protected on Friday. A daily close below this point would open up another 144 points on downside for NIFTY. according to time cycle analysis. As per Price cycle as I mentioned earlier as well it is signaling downside the support of this Price cycle is at 11570 on spot. But for trading purposes who deals only in plane futures or options they should wait for some bounce from current levels until the zone of 11860 to 11880 to short with the SL of 11916 and the target of 11570 and 11410 on spot. The beauty of considering both the cycles of Price and Time is the best combination to understanding the basic pattern and at the same time also provide a greater clarity when 1 cycle wont complete its rotation and when the cycle will complete its rotation. Because Price and Time has to be on same track to complete the rotation of a combined cycle if they are not aligned on same direction it would always give mixed signals to all Traders

Many of my reeders usually thinks I trade with such wide stoploss which is not true really. The levels which I share are not the trading levels they are cycle levels which are used to understand the direction of an index or stock. Several times I had said this fact in past. Infact no one should take a trade whose risk reward doesn’t gives the ratio of 1 on 1 but if you can trade with option spread then these cycle levels would be of great help. Because option spreads could give you the flexibility to handle market Voletility and at the same time it helps you to execute plan B in trading

Trading options spread could be very risky if you are not aware of all cycles of short medium and long term

Disclaimer views expressed above are personal. And are Subject to change with time. Any Trades taken with reference to above Analysis has to be at your own risk. Trading in Financial markets is always subject to risk. So dont forget to consult your Financial advisor before taking any trades.

NIFTY update

NIFTY is getting nervous before very important Gann Dates which falls on Tomorrow and Monday. Our initial targets was 12060 on spot which was shared on Monday evening. Todays high is 12025 on spot which fall short by 35 points as of now. Though nothing really changes with trend but need to stay conscious before 2 Very strong Gann Dates for all Markets around our planet. On trade front Hedging is fine. But for shorting need to wait until 11725 to 11775 breaks on spot. Till then need to take intraday shorts as we continue to do as per Angles. TIME Element would get more active now