Nifty: Wait for clarity to emerge before directional trade

2 янв. 2023 г.

Nifty

On 29 Dec expiry day, I had suggested a Long trade which was squared off once Nifty touched 21 day EMA. It's there in the timeline.


Now, we are looking at Daily candlestick chart pattern

1. Nifty yo-yoing between 21 day EMA (Currently around 18252) and 63 day EMA ( around 18083)

2. Given breakdown below the blue trend line and now retesting it

3. Resistance area blue line and 21 day EMA

4. 63 day EMA and yellow horizontal zone providing support for time being

5. No clear direction in Nifty as of now...
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Trigger points that can give direction
- Result season to begin soon
- Budget expectations to be built in
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We have a non directional trade still active which is in profits of roughly 76 points as of now. We continue to hold it and look to adjust in case we sense a direction emerging.
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In case of a Breakout we are looking at 18720 odd levels as our target level
in case of a breakdown we are looking at a possibility of roughly 17294 odd levels.
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To trade with me, Do Like and Follow for getting more trading ideas like these...!!!


PLs note: Logic behind using 21 day EMA and 63 day EMA instead of standard 20 day EMA and 50 day EMA

- In a month we have 30 days.
- barring Saturday / Sunday we have roughly 22 days
- 1 holiday session factored in per month
- That gives us 21 trading sessions in a month
- Multiply by 3 months we get 63 days

For me, this represents 1 month and 3 month average trade more precisely, than standard 20 day EMA and 50 day EMA. You are free to follow your own instincts and what works best for you...!!!

Trust you find this useful.

Take care & happy trading...!!!

Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- I have been wrong in the past and can be wrong again in future too
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be