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NIFTY FUTURES

JULY  SERIES : PREPARATORY WORK AND A FREE CIRCULATORY COPY ONLY

NIFTY SPOT /CASH :  What to expect tomorrow : 30.07.2014  Nifty  projected High and low 7800 – 7700

On the Upside  : Immediate and major resistance for nifty  is now seen at 7768 – 7781  zone  &  this is a crucial level.Nifty spot has to trade above 7768 – 7781  level for some time atleast  & only on  crossing  this major hurdle on the upside and trade for 5 min and above can go on to test levels of 7795 – 7816  zone . Now 7799 will be a very crucial zone to watch out for as once the zone of  7799  -7808 is taken out which is the upper resistance zone on Daily time frame  you can see a short covering rally to higher levels in coming sessions.

On the downside: immediate  support seen for nifty futures is seen at  7725  level and only breaking this support can snap and drag the index down lower to test its crucial support @ 7700 zone . 7700 for now will lend a very good support for the Index. Index if only snaps 7700 – 7689 and closes below this level is a sign of warning. At no point of time should the index breach 7676  as it shows that a major correction can take place in the coming sessions. Till such time 7700 – 7689 holds the bulls are safe and the smart money will buy any such dips. Maximum pain seen for now is 7750 zone and only breaching this zone or tampering with this level you can fore see the targets mentioned above

Look for supply and demand zone on chart below clearly de marked in Red ( Red colour ) Green for demand areas & look for long term targets below

Candle pattern daily chart : The daily candle pattern is a long dark day candle pattern.

For the conservative nifty trader see the levels below & trade: Stop is a must

For long on nifty futures buy only above : 7772  level for a target of 7787 – 7797 – 7810 – 7833 – 7848  with a stop at level 7748

For short on nifty futures sell only below : 7725 level for targets 7710 – 7700 – 7686  - 7663 – 7648 with a stop at 7750

Nifty future’s should at least trade 3 min and above to initiate trade’s

NIFTY SPOT PIVOTS LEVEL FOR THE DAY 30.07.2014
CLOSE/OPEN S3 S2 S1 PIVOT R1 R2 R3
7748 7633 7678 7710 7755 7788 7832 7865

Relative strength of nifty hourly time frame is 45 and on Day chart 69 , volatility: 0.008 movement :61 & Put call ratio seen at 0.90

Trade for the Day from the 30.07.2014 on wards only for professional swing traders and not for investment purpose

Script name last close Stop loss L- 1 Centre L-2 L- 3 COVER L- 4 COVER RSI Reversal value
Buy here Buy here cover cover

 

Trade for the day 30.07.2014 : Buy PNB Futures trading @ 939 with a stop at 928.75 for targets of 950 – 962 

Trade for the day 28.07.2014 :  Positional trade : Buy Petronet trading @ 184 and keep a stop at 178 and trade long for a target of 191 – 194 and 199. Time frame 3 to 4 sessions

 

Chart of NIFTY hourly time frame for reference for 28.07.14

NIFTY HOURLY 28.07

 

 

 

 

 Nifty index Road map ahead ; Chart update (Fresh update ) from 28.07.2014 on wards:

Please enlarge the Image to see the chart and have updated the details in the chart

NIFTY 28.07.14

View :  I would like to say at lower levels buying will be seen by smart money

Below 7698 – 7690  market will correct. Very strong base support seen at 7740 – 7728 and 7700 levels

NIFTY 30.06.14

 

Study material on how to trade the moving averages below :

The two moving averages

I use two moving averages: the 10 period Exponential moving average (EMA) and the 30 period exponential moving average (EMA). I like to use a slower one and a faster one. Why? Because when the faster one (10) crosses over the slower one (30), it will often signal a trend change. Let’s look at an example below:

The Green coloured line is the 10 Ema & The Black coloured line is the 30 Ema

Moving average nifty

 

You can see in the chart above how these lines can help you define trends. On the left side of the chart the 10 EMA is above the 30 EMA and the trend is up. The 10 EMA crosses down below the 30 EMA thereafter and the trend is down. Then, the 10 EMA crosses back up through the 30 EMA in September and the trend is up again – and it stays up for several months thereafter.

Here are the rules:

Focus on long positions only when the 10 EMA is above the 30 EMA. Focus on short positions only when the 10 EMA is below the 30 EMA. It doesn’t get any simpler than that and it will ALWAYS keep you on the right side of the trend!

Note that moving averages only work well when a stock is trending – not when they are in a trading range. When a stock (or the market itself) becomes “sloppy” then you can ignore moving averages – they won’t work!

Here are the important things to remember (for long positions – reverse for short positions.):

  1. The 10 EMA must be above the 30 EMA.
  2. There must be plenty of space in between the moving averages.
  3. Both moving averages must be sloping upward.
  4. When the larger moving average which is sloping upward suddenly flatten’s and starts trending in the opposite direction is when you should become a bit cautious on the direction of the trend ( 30 Ema )

The 200 period moving average

The 200 SMA is used to separate bull territory from bear territory. Studies have shown that by focusing on long positions above this line and short positions below this line can give you a slight edge.

You should add this moving averages to all of your charts in all time frames.

The 200 SMA is the most important moving average to have on a stock chart. You will be surprised at how many times a stock will reverse in this area.

USE THE FOLLOWING PARAMETERS  TO SELECT  TRADES OTHER THAN THE MOVING AVERAGES  : Relative strength index: macd : highs and lows: bearish and bullish divergence: last daily candle : reconfirm it with commodity channel index and composite index: break out levels: pivot’s with aide of supports and resistance:

 

 

 

 

 

 

 

 

Live calls will be posted during trading hours :

 

 

 

 

PARAMETERS USED TO SELECT TRADES : Relative strength index: macd : highs and lows: bearish and bullish divergence: last daily candle : reconfirmed with commodity channel index and composite index: break out levels: pivot’s with aide of supports and resistance: nifty levels also precisely cross checked: moving averages cross over’s the golden and dead crosses : stochastic index : Volumes : Divergence

 

Disclaimer

The recommendations made herein or otherwise do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein or otherwise will be profitable or that they will not result in losses. Readers using the information contained herein or otherwise are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness. The recommendations are based on the theory of Technical Analysis and do not reflect the fundamental validity of the Scrip.

This blog is purely a technical trading site and free for all.