It’s earning season and a lot of moves in the market will either make you a lot of money or leave you with a lot short!
It depends on how good you read the tape.
I will put up a chart of Infosys later to tell you what we thought of it prior to it’s earnings release.
For today, the market will again have to hold 5367 and 5355/ 5344.
The value areas for the Nifty are : 5387-5376-5365
For the bank nifty they are : 9783-9748-9716.
Last week I did three trades on Infy. Two winners and one loser. So I was keeping a close eye on the action unfolding.
Have a look at the chart:
This is a profile chart for the past four days.
Notice the chart making ‘P’ type profiles for the past three days.
In Market profile a “p” denotes long liquidation or selling at the top.
Each of those days had sellers right at the top, so it was a simple arithmetic which said that sellers would step in at the open today.
Also notice that we are presently rotating at 2830, which is a high volume node from the 8th of July.
Also 2800-2820 as mentioned earlier was a seller zone, taken out by buyers last week.
This break has a very good chance of halting right here at 2800-2830.
If you are using an MP chart you will see the single prints in this 2800-2820 range.
These are good indicators of direction.
I still consider 2800-2830 as a ‘no trade zone’
The market has to auction above 2830 convincingly for longs.
Also note that today being a results day, better to give the market a few more points in range. We can’t be precise on a level today.
We have been following reliance as well on the blog, and have noted often the presence of the seller at 1090 levels, as well as 1045 being an important ref level.
Have a look at this chart :
Notice the selling at the top of the chart.
Now see the bracket forming, two yellow lines.
I don’t want to be taking a trade at the current levels, as it gives equal chances to a move down in the bracket as well as a break-out above.
Let’s just say, if you want to be a buyer, buy only when the bracket is resolved.