We have begun the first twenty minutes of trade well below the 5320 level.
I had mentioned 5271-5320-5344-5367 as the levels to watch in this bracket which is emerging.
Bracket trading is good and easy provided you understand it early.
5320 still is the pivot around which the other 2 levels can be reached.
Viren feels that end of quarter window dressing is holding the market up. I also feels that sellers have not been very aggressive.
Till 5271 is held, it is ‘buy the dips’ market or ‘short the rips’ till 5367.
Two tongued language, yes, but that’s how you play the bracket–play it both sides.
Today is the seventh trading day in the bracket highlighted by the yellow lines.
Within this bracket, we can see value being established sideways ( blue areas) .
The arrows also denote areas where buying/ selling has occurred.
The best way to trade these brackets is to know your levels well and be quick to take profits. Other than that, one can buy at the bottom or sell near the top with tight stops.
For the record, the chart updated above has been invalidated.
Does make me feel stupid, when my analysis goes wrong. But I rather look stupid than lose money ( mine as well as yours).
The markets have their own flow and we have to respect that.
Consider the market movement to be like that of a river in flow. When the current is strong you might as well swim with it than against it.
Today the flow has been strong southwards.We just have to accept the message of the market and move on.
This is the intra day chart of the Nifty ( 30 min duration).
The profile is markedly absent.And the candlesticks all point down.
A perfect trend day.
These days are rare. But easiest to trade. Just hold and wait.