Working with different time frames of a chart provides much better clarity in understanding what could be the most likely next move in it. A good analyst never arrives at a conclusion just by looking at a chart in isolation. Starting today we are going to discuss what could unfold in Nifty on day to day basis. Even though I will not be populating any other Nifty time frame chart except daily chart, I would like to disclose that the forecasts that you would read in this blog in Nifty or for that matter any other stocks is arrived after looking into different time frames.
I work with monthly, weekly and daily charts. I used to look at hourly and 15 min chart, however I have stopped using it on regular basis as time frames above daily chart works better for me in terms of forecasting. I invest in markets and do not trade now a days and hence I have also restricted looking at charts when markets are live. This is how this blog is going to shape up from today, daily outlook from Tuesdays till Fridays; intermediate outlook on Mondays and occasionally major outlook as and when things unfold. Apart from all these knowledge sharing would also be focused, as I believe everyone who is reading this blog should not only follow me on markets rather learn and develop one’s own style in forecasting markets. Knowledge sessions would be on weekends.
Nifty Daily Outlook
Looking at the chart, and focusing more on the up move that happened from 7940, clearly shows how Nifty has held up in a tight range. An unconvincing 700 points move on the upside and held back in a tight range. This chart shows a different picture to that of the other charts that we were discussing earlier this week. If you were look at the exact points in this Nifty chart, you could find one thing in common, Nifty has been making lower highs and higher lows; a perfect example for non-trending phase of market.
The good news is we are going to move out of this range very soon. Once we break this congestion zone either on the upside or downside, we are going to see another round of 500-600 points uninterrupted. A two days consecutive close below 8380 marks break down of this zone and a two day consecutive close above 8530 marks a broke out of this zone on upside. It’s always risky to trade in a tight range but a good jobber loves this kind of market situation as he has multiple entry exit opportunities.
Will keep you posted on daily outlook with levels as and when things starts to unfold in Nifty.