Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Nifty, Frustration & Friday

1 min read

 Now Every Body Might be in a great confusion with yesterdays closing in dow. Dow shows a massive

 Strength of +552 pts also recovered nearly more than 800 pts from its day lows. You may say that oh 

 what a blow to the bears!!!. But the real fact is that they need still nearly +200 pts i.e a closing above 9060 by today

 in dow to get an exact buy signal as per 5 EMA trading system in weekly charts. which will likely to be 

 the strongest signal in dow to take them upwards




So Will our market respond to dow's yesterday's movement?

This is everyones routine question about dow. Will our respond to global news?

Will we close today positive today as inflation figures are now at single digits (9.8% ).

Whatever may be the reason's, global cues, dow movement, Asian market cues our

market have its own direction. It may responds to the intial stimulus from the global markets

or from the so called economic data's But the Closing will be entirely depends on the Biggie Operators. 

The could operate the market as they wish. And nifty bends accordingly.



To find a technical direction in nifty here is a 3 month weekly chart for nifty. And applying the same

5 EMA concept to find the direction of the market. As per 5 EMA trading system still there is no great buy

on this chart.. It reveals only the sell signal. i.e the if price still trades below the 5EMA(<2996). So to get 

a buy signal on nifty we need atleast a overall positive closing figure above 2973 to hope for higher 

targets and a close above 3000-3020 levels in nifty by today(14th Friday) will induce a buy signal on 

Weekly  charts.


But if we apply the same concept to the daily charts we get a sell signal for today. i.e last wednesday's

closing is exactly below the 5EMA(2945). So inorder to get a buy signal we need a close atleast above 

2950 roughly to get a buy signal in nifty charts.

Summary

1)Nifty atleast requires a close above 2950 to sustain a upward momentum by today itself

2)Nifty above 2950 will induce buy signal in daily charts

3)Nifty above 3000-3020 will induce buy signal in weekly charts and targets nifty towards 3450 

4)Any close below 2950 will trigger a sell signal in both daily & weekly charts may be a possible testing of newer lows in nifty in coming weeks

5)5EMA Systems, Falling 2- Period RSI EMA systems suggest a selling wave in coming days.


As of now SGX Nifty futures are trading near 2890 levels. Asian markets opened positively.

The only worrying factor is that Rupee started weakening against dollar and dow futures trading once 

again in negative direction(-84 pts). Hmmm,seems FII's once again started deleveraging once again from

our markets. Todays closing is going to be the exact fight between the bulls and bears. Nowdays friday's

only belongs to Warrior Traders rest stay away and just watch the market. 


Regards,

Rajandran R

Happy Trading!!

 

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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