Nifty loses 3 days in a row! Will the bears continue to rule? 4/5 (1)

Bank Nifty intraday

Nifty continued with the losing streak for the 3rd consecutive session in today’s trade.

The Nifty50 index opened at 10,807.00, but soon witnessed bears mounting up and the index once again, succumbed to the their supply.  After hitting lows of 10,692.70 during the morning trade, the index , however recouped some of it losses and closed at 10,737.60, documenting losses of 0.53%

Bank Nifty also witnessed bears taking the front stage from the start of the trading session. The Index opened gap down at 27,389.20 and had a relatively weaker session as the sell-off continued through out the day. The index closed at 27,248.25 marking losses of 0.75%!

In the following post , I will be throwing light on latest Technical Picture of Nifty and Bank Nifty and will discuss how shall Intraday traders be positioned now in Index.

Intraday Trading Tips

Technical View-

Nifty has formed a Three Black Crows Pattern on daily charts which indicates a sustained selling pressure on Index. In today’s session, the Index has further moved below its 5 and 10 EMA which act as a line of support for short term and Intraday Traders. The momentum is aligned more towards the sell side and the negative sentiment in the index may continue below the support level of 10,720.

For Intraday traders, the immediate resistance of Nifty stands at 10,757 (R1) and immediate pivot support is at 10,720 level. Any break above/below these crucial levels may trigger a fresh buying/sell-off in index. However, aggressive positions on buy side of the trade is not advisable at this point of time.

Bank Nifty has also formed a Three Black Crows Pattern on Daily Charts again indicating the prevailing bearish momentum.  The Index is also trading much below the immediate support levels of 50, 20, 10 EMA indicating the underlying negative sentiment in Banks.

For Intraday Traders, the immediate intraday resistance for the index stands at 27,300 and Intraday support is placed 27,180.

Nifty Trading levels/Trade Date- 15/01/2019

Buy above 10,757 for targets of 10,775/10,797

Sell below 10,720 for targets of 10,700/10,680

Bank Nifty Trading levels/Trade Date- 15/01/2019

Buy above 27,300 for targets of 27,345/27,370

Sell below 27,180 for targets of 27,130/27,080

*All levels mentioned are of cash/ spot segment.

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Author: Traders' Chowk

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