January 20, 2020

Market outlook

Daily charts:
- trend is up on daily charts
- today, markets opened gapup and closed in the negative
- close was 1% down around 12224
- AD was 1:2

- VIX up 9%

- a huge bearish engulfing bar was formed today
- gap up was on back of very good results of REIANCE and HDFCBANK (both index heavyweights)
- this is a classic case of selling on good news

- on hourly charts, nifty is in sell mode

- 12300 was a very good support... it just broke easily
- huge call writing at 12300 and 12400 CE
- a top is in place?

- important support 12000

- weakest index this rally was BANKNIFTY... still no buy signal and probable H&S being formed

5 min charts:
- I am posting 5 min charts merely to show prev day supports
- traded short thrice today
- first short was very nicely profitable
- other short trades were no profit no loss thanks to a wrong SL
- the correct SL should have been 12300 F or higher.

No comments:

Post a Comment

Share this...