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NIFTY FUTURES

JULY  SERIES : PREPARATORY WORK AND A FREE CIRCULATORY COPY ONLY

NIFTY SPOT /CASH :  What to expect tomorrow : 07.07.2014  Nifty  projected High and low 7829 – 7733

On the Upside  : Immediate and major resistance for nifty  is now seen at 7774 – 7779  zone  &  this is a crucial level.Nifty spot has to trade above 7779  level  & only on  crossing  this major hurdle on the upside and trade for some time can go on to test levels of 7811 &  as 7829  zone . Now 7829 will be a very crucial zone to watch out for as once the zone of 7829 is taken out which is the upper trend line 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  7733  level and only breaking this support can snap and drag the index down lower to test its crucial support @ 7718 zone . If only  nifty spot ( Cash trades) below 7693 shows a sign of weakness creeping in.

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 Hammer pattern

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

For long on nifty futures buy only above : 0000  level for a target of 0000 – 0000 – 0000 – 0000 – 0000  with a stop at level 0000

For short on nifty futures sell only below : 0000 level for targets 0000 – 000 – 0000  - 0000 – 0000 with a stop at 0000

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

NIFTY SPOT PIVOTS LEVEL FOR THE DAY 07.07.2014
CLOSE/OPEN S3 S2 S1 PIVOT R1 R2 R3
7754 7594 7627 7691 7724 7788 7821 7884

Relative strength of nifty hourly time frame is 67 and on Day chart 69 , volatility: 0.0000 movement :00 & Put call ratio seen at 0.00

Trade for the Day from the 07.07.2014 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 07.07.2014 : Buy HDFC BANK futures trading @ 866 cmp : Positional traders buy this stock future with a stop at 842.50 for positional targets of 900 and 945 .Time frame one week to 10 days

Day traders buy as this is a break out trade with a stop below 856 for day targets of 874 – 883 and also 899 in 2 sessions

 

 

 

 

 Nifty index Road map ahead ; Chart update (Fresh update ) from 07.07.2014 on wards:

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

NIFTY 7.7.14

 

Nifty index Road map ahead ; Chart update (Fresh update ) from 30.06.2014 on wards:

Nifty spot road map ahead from 30.06.2014 onward Weekly analysis
Nifty has traded sideways for most part of the previous week and also made a higher low @ 7441 level
This level of 7441 is very crucial for the market in the coming week.This level as said was a very
healthy correction to buy on dips as suggested in the previous weekly analysis and once this level was testedthe smart money bought into the dips to propel nifty back to 7593 levels.

coming to the next week 7478 is an important zone to watch out for as nifty for now has found support
@ this level.7441 is a very key level to watch out for b’cos till such time this zone is protected the
bulls will be sitting pretty safe and only will be worried if this zone is tested as the last support for
the bulls will be 7441 ( very critical ) as it is also the critical 5 Ema  which they would not like this level to be breached.As breaking
7441 nifty can slide very sharply to 7411 and also 7372 in a very swift move creating panic and a sell of can be
seen if this zone is tested.
Now coming to the resistance on the upside 7554- 7593 for now is a major resistance and this zone once taken out
on the upside a fresh breakout is seen.A close @ 7593 – 7601 (closing basis) will propel the nifty to 7769 – 7857.

A classic Doji candle on both the weekly and daily charts is spotted on the Nifty index.

Be ready for very sharp moves as we enter a week of a big event The budget with huge expectations.

View :  I would like to say above 7593 buying will be seen aggressively for targets of 7769 – 7857

Below 7440 market can correct sharply to levels of 7411 – 7372 – 7354

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.