We are in the first month of 2016. We are all set for a great year with tweaked Nifty trading techniques. But the start of the trading sessions is not as great as for the retail traders wants. Last few days was a real topsy turvy ride for the day traders. Before we come to the real analysis of Nifty, I would like to let you know that I have a professional service for my followers where I send trade alerts on Nifty option through WhatsApp. January has started as a dream month for our subscribers and we are in good gains till now. Check our performances below:
Now let’s concentrate on Nifty hourly chart. In the hourly chart, we have seen a series of consolidation and then a channel breakdown yesterday. The indicators are showing bearish crossovers to confirm downside strength. Check the image below:
Lets now check the daily chart of Nifty. We have seen the support breakdown happened below 7540. Bearish MACD indicator shows the downside strength. Channel support on the daily chart comes around 7365 zone and this channel support is dynamic, i.e. will decrease with time.
Lets now check the weekly chart of Nifty. We have seen confirmed support breakdown happened below 7540. Bearish Stochastics and MACD indicator show the downside strength. Channel support on the weekly chart comes around 7020 zone and this channel support is dynamic, i.e. will decrease with time.
Lets finally check the monthly chart of Nifty. The monthly chart support comes in 6357. Bearish Stochastics and MACD indicator show the downside strength. Channel support on the monthly chart comes around 6109 zone and this channel support is dynamic, i.e. will increase with time. So only in the monthly chart, we are in an uptrend channel, rest daily and weekly charts show we are in a confirmed downtrend.
So how to trade Nifty now? Here are my 4 top Nifty trading techniques for the first 3 months of 2016.
- We are in a confirmed downtrend in daily and weekly charts. Short term players Nifty trading techniques should be to sell in rallies with a stop loss of 8000.
- Short term players, no bottom fishing, please.
- Long term uptrend in the monthly chart is still intact. So have an eye on good stocks those are out-performing the market, as in any bounce back these scrips will lead the show.
- Some stocks that can be really good to accumulate in further dips are – ASIAN PAINT (CMP 882.30), BPCL (CMP 930.60) and RELIANCE (CMP 1072.60). Grab them in sharp dips of Nifty. If you have some more stock ideas I would like to have your comment below the post.
Indrajit is a professional blogger and trading system developer. Amibroker expert, WordPress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.