Monday, July 7, 2014

Nifty is taking tentative steps in the direction of trend...

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty Pre-Market View.

FII's have been buying big(last 5 days) after the consolidation with in the major uptrend. (A fact worth keeping a part of the trading plan)
Prices, in the short term, have been closing above two key ST averages. (As long as prices close above these, technicals remain strong; after a close below it, follow up is impt; if not, trend would reassert)
The ST direction is "biased UP", as long as prices stay above 7697-7707 & close above these two key averages (21 or 34 hr smas).(When prices dropped to 7662 on Friday @ 1.00 PM, the 34 hr sma stood at 7662).
The strategy that has worked consistently well with low risk-high reward ratio is "Initiating a trade at 50%-61.8% retrace with 80% as SL". Adapt to it.(7673 was the 61.8% retrace of the last rise from 7623 to 7755 on Friday & Nifty made a low @ 7662 & rose by 100 approx)
Aggressively Holding above 7698(2-Hr low), Conservatively Holding above 7689(DEma), uptrend continues....