Nifty Technical Analysis
I am not here to update the technical values of nifty and stocks.
There are many websites to update that values regarding the nifty technical analysis and nifty50 scrips.
I will share my knowledge and experience and improving skills regarding nifty technical analysis and other stock analyses.
let us learn how to predict nifty
Daily Nifty Prediction Case 1: Based on The News: Nifty Technical Analysis
- The market will mainly depend on sentiments.
- Whenever some good news has arrived about the financial sector, It will go bullish in most cases.
- If there is some negative news about the financial industry, It will go bearish in most cases.
- you have to monitor the regular news based on stocks and financial sectors.
Daily Nifty Prediction Case 2: Based On The Other Markets: Nifty Technical Analysis
- Other country markets like Nasdaq, SGX nifty, FTSE, CAC, DAX.
- After the day closing, go through these types of needs and check whether these markets have closed in a bullish position or a bearish position.
- Mainly, you have to check the US market (Nasdaq) because the US market is a global market boss.
- For example, if the US market had close in some bullish range, our nifty will be open in gap up; this may occur very frequently.
- If the US market has closed in some bearish field, our nifty will open in gap-down.
- If the US market were range-bound, Nifty should be open flat.
Daily Nifty Prediction Case 3: Marking Of Supply And Demand Zones: Nifty Technical Analysis
Go to the daily frame chart and mark the demand and supply zones
Supply zone: This is the zone where the sellers are in massive amounts; in most cases, if the stock touches this supply zone, it will revert strongly in many cases.
- For example, if nifty touches the supply zone and closes below the supply zone, you may expect shorting market for the next day in most cases.
Demand zone: This is the zone where big buyers will locate with massive amounts.
In most cases, if the stock touches this demand zone, it will revert to the bullish side in many cases.
- For example, if nifty touches the demand zone and does not break the demand zone and closes above the demand zone, you can expect the market in buying mode for the next day.
These supply and demand zones are my favourite zones, and these zones are beneficial to predict the market for the next day.
You may ask,
How to mark the supply zone? Nifty Technical Analysis
GO to the daily frame chart; from there, you have to zoom out and check where the nifty has reverted several times by touching those levels.
That levels are our supply zones.
How to mark the Demand zone? Nifty Technical Analysis
Again, go to the daily frame chart and check where the nifty has reverted to the buying side by touching some levels.
That level is our demand zone.
Daily Nifty Prediction Case 3: Marking Of Daily, Weekly, Monthly Support And Resistance Levels.
These levels are most important for the daily nifty prediction
By marking the support and resistance levels, you should get a clear-cut vision of a Nifty moment.
Daily and monthly support and resistance levels are essential for intraday traders.
For positional traders, weekly, monthly support and resistance levels are helpful.
Daily nifty prediction case 4: Moment of Nifty50 scrips.
In many cases, the nifty movement can be predicted by following nifty50 stocks.
Nifty will move simultaneously along with all the Nifty50 stocks, and likely, all the Nifty50 scrips will carry simultaneously along with nifty, vice versa.
For example: If nifty is moving towards the bullish side, mainly the reason is, one of the sectors like pharma sector, the banking sector, transport sector e.t.c are performing a bullish move.
If nifty is moving towards the bearish side, one or more of the sectors are melting.
Daily Nifty Prediction Case 5: Based On Results And Events
The quarterly reports of the nifty50 stocks will be helpful for the prediction of Nifty.
For example, If HDFC had posted positive and profitable results in quarterly reports the following day or the next day, nifty will be on the bullish side.
For example, If the quarterly financial report of Dr. Reddy had posted for losses, nifty will move towards the bearish side in most of the cases.
RBI policy may also decide the nifty moment.
Both nifty and nifty banks move simultaneously according to each other, vice versa.
So you have to be aware of the dates of events and RBI policy.
One more thing about nifty, I frequently observed is, whenever there is a trending day, the very next day will be a choppy market.
Daily Nifty Prediction Case 6: Prediction Of Nifty Moment On Expiry.
The nifty moment will be more volatile in monthly expiry because of the Nifty50 stocks or several factors.
Prediction of nifty in monthly expiry days will be a little bit difficult.
I recommend not to trade on events day, monthly expiry, RBI policy; the reason why I had suggested this is because these days market will be more volatile, and your stop loss will be taken very easily, and you may not be able to predict which side market is moving.
Support And Resistance Levels Are Important For Nifty Technical Analysis.
How To Find Out The Support And Resistance Levels? Nifty Technical Analysis
Many of the websites are posting nifty support and resistance predictions level daily.
You can note those levels, but you have to be strict that ranges from the one website you are pointing to daily.
You have to follow only one website for nifty support and resistance predictions.
How To Take Trade By Using The Nifty Support And Resistance Predictions?nifty technical analysis
The base of this prediction is the pivot range.
Keep this in the center of the table and start predicting nifty and nifty 50 scrips.
The pivot range point is like the origin of the axis.
These nifty predictions are for intraday purposes because these levels will change based on Nifty price action.
I recommend trading these predictions for intraday
How to trade accurately and profitably based on these levels? Nifty Technical Analysis.
Let’s assume that pivot range is the origin of the axis.
Resistance Range R1, R2, And R3 Are In The Positive Direction Of The X-axis (Bullish Range). Nifty Technical Analysis
When stock price opens above the pivot range, that means on the bullish side.
Your room should be available till the stock price to the R1 resistance.
Take the trade slightly above the pivot range and keep stop loss below the pivot range.
Your target should be the R1 resistance.
After reaching the R1 resistance, you can book your profits.
If the stock had broken the R1 resistance, that R1 resistance would become support; and the scrip will have more scope for the bullish moment.
I will enter the trade above the R1 resistance and keep the stop loss below the R1 resistance, and my target will be the R2 resistance.
If the stock had broken the R2 resistance, R2 resistance would become solid support; and the script will have massive scope for the bullish moment.
I will confidently enter the trade above the R2 resistance and keep the stop loss below the R2 resistance, and my target will be the R3 resistance.
The more resistance breaks, the more intense the trade will be, and I will take that type of trades very confidently, and my risk-reward ratio will be mostly 1:2 and above.
Support Ranges Like S1, S2 And S3 Are In The Negative Direction Of The X-axis (Bearish Range). Nifty Technical Analysis.
When stock price opens below the pivot range, that means on the bearish side.
Your room should be available till the stock price to the S1 support range.
Take the trade slightly below the pivot range and keep stop loss above the pivot range.
Your target should be the S1 support.
After reaching the S1 support range, you can book your profits
If the stock had broken the S1 support, S1 support would become resistant; and the scrip will have more scope for the bearish moment.
I will enter the trade below the S1 support and keep the stop loss above the S1 support, and my target will be the S2 support.
If the stock had broken the S2 support, S2 support would become extremely resistant; and the scrip will have massive scope for the bearish moment.
I will confidently enter the trade below the S2 support and keep the stop loss above the S2 support, and my target will be the S3 support.
The more the number of support breaks, the intense the trade will be, and I will take that type of trades very confidently, and my risk-reward ratio will be mostly 1:2 and above.
Without Using Indicators For Nifty Technical Analysis, You Wont Get A Accurate And Probable Trade.
How to Trade in stock Intraday with the help of Moving Average: Nifty Technical Analysis.
Trading by using the moving average will be accurate
Enter the long trade, when a cross-over of moving average takes place towards the bullish side.
And your stop loss should be the day low.
And your target would be according to your risk-reward ratio.
Enter the short trade when a cross-over of moving average takes place towards the bearish side.
And your stop loss should be the day high.
And your target would be according to your risk-reward ratio.
I suggest the 5 minute time frame for the intraday traders.
How to Trade in stock Intraday with the help of Bolinger Band: Nifty Technical Analysis.
Bolinger band will give the early signal, whether the market is moving towards the bullish side or bearish side.
If the Bolinger band is in a narrow position, that means contracting, and the signal is that market is in consolidation mode, so do not enter any trade while the market is in consolidation mode; wait for the scrip for picking movement.
The signal of whether the market is picking movement is, our indicator Bolinger band will expand, or it will show some expansion moment.
You can enter the trade after the expansion of the Bolinger band.
Remember Bolinger band will show whether the market is in bullish mode, consolidation mode, or bearish mode.
When the 5-minute candle has opened outside the Bolinger band, that trade will not be much effective.
Trade will be effective when the candle stays on the inner side of the Bollinger band.
I will trade when the candle is on the inner side of the Bollinger band.
I will avoid trading when the candle opens outside the Bollinger band.
How to Trade in stock Intraday with the help of Relative strength index (RSI): Nifty Technical Analysis
The relative strength index will be helpful to take the trade or exit from the market.
RSI will confirm to take the trade or exit.
If the RSI level is above the value of 50, then it is the most probable of entering the buy trade.
If you had entered the trade above the RSI 50 level, In the middle of the market, if the value of the RSI drops below 50 (It will occur in rare cases), In that case, the trade may not perform most accurately.
Remember one thing; all indicators will show the direction of the market.
Remember one thing rsi trading strategy will work more effectively on the combination of moving average, RSI and Bollinger band for nifty technical analysis.
Volume Weighted Average Price Strategy (VWAP): Nifty Technical Analysis.
It is an essential technical indicator for the day trader for nifty technical analysis and nifty 50 scrips.
VWAP is a moving average that takes into account the volumes of shares been traded.
VWAP tells who is in control of price action, the bulls or the bears.
Above VWAP, buyers control the price, and below the VWAP, sellers are gaining control over the price action.
Professional traders buy and short the stock near the VWAP levels.
After the opening, the stock will trade heavily in the first 5 minutes.
In a gap-up stock, if there is a buying interest by the institutional traders, the scrip will trade above the VWAP and move high”s.
So it is an excellent opportunity to buy when price takes support at the VWAP.
If the price rejects VWAP and starts to move down, it means many traders are selling the stock for profits, so it is an excellent opportunity to sell the stock short when the price takes resistance at the VWAP.
If there were no interest in the stock from institutional buyers, the scrip would move in sideways near the VWAP level.
We should stay away from the stock in this case.
If stock finds support at VWAP, we can buy the stock.
If a stock faces resistance over VWAP, we can short sell the stock.
Stop-loss can be placed above and below the VWAP, and the target will be the following support and the next resistance.
We can confirm our buying position by analyzing the 15-minute chart.
Price should be above the VWAP in buying position for Nifty Technical Analysis and Nifty 50 scrips.
Price should be below the VWAP if we are shorting the stock.
I recommend waiting for at least half an hour by taking any position if you are not confirmed with the direction.
Using a 15-minute chart will confirm the direction of the stock, but for entering the trade, use a 5-minute chart.
How To Pick The Stocks For VWAP Trading Strategy? Nifty Technical Analysis
While trading the VWAP trading strategy, I always choose the stock that had opened the gap up above the 4%.
I always choose the stock opening the gap below the 4% for the opening gap down strategy.
Average volume should always be more significant than 100k because we want the higher volume of the stock to move.
We should not always be stuck with moving fewer stocks.
For Intraday VWAP trading strategy, observation of the candlestick patterns is more important for the trade probability.
Catalyst is an essential character to be considered for day trading.
With a strong catalyst, a stock can move 10 to 15 % in a single day.
If a catalyst is a negative side for the stock, it will fall.
If a catalyst is positive for the stock, it will rise.
But for some time, a single catalyst behaves as negatively and positively for the different stocks.
For example, there was news in the market for merging three banks like Bank of Baroda, Vijaya Bank, and Dena bank.
The next day, Baroda and Vijaya bank had opened the gap down, and Dena bank had opened in the gap-up.
The same catalyst is acting both negatively and positively at the same time for different stocks.
You can scan the stocks based on the news for the gap up and gap down strategies.
VWAP trading strategy are the most probable and profitable, and they may give a 1:2 and 1:3 risk-reward ratio.
Only one tool that will be helpful for the intraday VWAP trading strategy is VWAP.
VWAP and the best indicators for intraday trading will be available in the trading view platform most accurately.
For intraday VWAP trading strategy and best indicators for intraday trading, a higher time frame is used to predict the stock direction.
You have to mark the support and resistance levels in the chart before taking the trade.
I recommend large-cap trading stocks because an individual can’t manipulate the scrip, and the movement will be based on that stock’s news and financial status.
These Indicators may applicable to Nifty 50 scrips and other stocks.
All the above cases discussed are all probabilities; there are no sure shot points in the stock market.
I may confidently say that if you follow the above rules, you can get the most accurate trade on the RSI trading strategy.
The trading view platform is the ocean of indicators and screeners also available in this platform.
Tools that can be helpful for trading are under one roof.
For more accurate and profitable information you can contact us.
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