February 24, 2015

Market outlook

Markets close below 8800 for 2nd consecutive day.

At this point, there are 2 possibilities:
- nifty forms a lower swing high (current swing high is 9000) leading to break of 8470 / new lows or
- nifty forms a higher swing low (current swing low is 8470) leading to break above 9000/ new highs.

Option writing points to resistance at 9000 (FEB and MAR series).

EOD charts

Intraday charts

Markets were rangebound  the full day. There were 2 signals (buy/ sell) and shown with arrows on the chart. This type of trade comes with practice and the trick is look at large bars and then initiate position in the direction of the trend at that time. Tight trailing SL is a must.

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