Nifty completes ABCD harmonic pattern, How to trade now

• FII's bought 4.7  K contract of Index Future worth 191 cores, 379 Long contract were added and 4.3 K short contracts  were squared off by FII's. Net Open Interest decreased  by 4 K contract , so FII are doing profit booking  in short Index Futures.

Nifty  did another life high today @ 7969 and saw a reversal after 2:30 PM, as seen in below hourly chart, expanding triangle pattern is forming in Nifty suggesting if 7785-7755 is not held...

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Bank Nifty Weekly Analysis for Aug F&O expiry

Last Week we gave Chopad Level of 15176  Bank Nifty did 3 target on upside , rewarding Chopad Followers , Bank Nifty made a breakout last week so lets analyze  how to trade Bank Nifty in coming week.

Bank Nifty Hourly

Bank Nifty hourly charts has given a breakout now the resistance of 15750 will become an important support.Negative divergence are visible in hourly charts but ..

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Nifty Weekly Analysis for Aug F&O expiry

Last Week we gave Chopad level of 7801, Nifty did  3 target on upside our target was 7945 nifty did a high of 7930 and closing a record high and first time a weekly close above 7900.  Lets analyze how to trade Nifty in August F&O Expiry week.

 Nifty Hourly Chart

Nifty Hourly charts is forming an expanding triangle formation which is bearish in nature if nifty close below 7900. Break and close below 7900 nifty can see 7800/7750 levels. Above 7932 the ....

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Nifty ready for Big move, FII Data Analysis

• FII's bought 7  K contract of Index Future worth 276 cores, 2.7 K Long contract were added and 4.2 K short contracts  were squared off by FII's. Net Open Interest decreased  by 1.4 K contract , so FII are going long ans squaring off shorts in Index Futures.From start of series net on net basis  FII are holding 1.3 K Index longs and 22.1 K Index shorts. So still there bias is on downside.

Nifty did a fresh life high today @ 7922,Nifty has rallied 382  points in 8 trading session and formed a bearish engulfing pattern today, Also on hourly charts broke the channel bottom after 8 trading sessions, which gives initial target of 7800-7784. Als0 EW chart also gives the same target. This all levels get invalidated if Nifty starts trading above 7922 for 1 hour ..

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Why Do Traders Lose in Financial Market Part-I

If you've been trading for a long time, you no doubt have felt that a monstrous, invisible hand sometimes reaches into your trading account and takes out money. It doesn't seem to matter how many books you buy, how many seminars you attend or how many hours you spend analyzing price charts, you just can't seem to prevent that invisible hand from depleting your trading account funds.
Which brings us to the question: Why do traders lose? Or maybe we should ask, "How do you stop the Hand?" Whether you are a seasoned professional or just thinking about opening your first trading account, the ability to stop the Hand is proportional to how well you understand and overcome the Five Fatal Flaws of trading. For each fatal flaw represents a finger on the invisible hand that wreaks havoc with your trading account.

Fatal Flaw No. 1 -- Lack of Methodology

If you aim to be a consistently successful trader, then you must have a defined trading methodology, which is simply a clear and concise way of looking at markets. Guessing or going by gut instinct won't work over the long run. If you don't have a defined trading methodology, then you don't have a way to know what constitutes a buy or sell signal. Moreover, you can't even consistently correctly identify the trend.
How to overcome this fatal flaw? Answer: Write down your methodology. Define in writing what your analytical tools are and, more importantly, how you use them. It doesn't matter whether you use the

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Nifty nearing Short term top, FII data Analysis

• FII's bought 11.4 K contract of Index Future worth 451 cores, 9 K Long contract were added and 2.3 K short contracts  were squared off by FII's. Net Open Interest increased  by 6.7 K contract , so FII are going long ans squaring off shorts in Index Futures.

Nifty did a fresh life high today @ 7918,Nifty has rallied 378 points in 7 trading session and formed a DOJI pattern today suggesting indecision in Bulls and bears. As per EW we can make a short term top in next 2 days, another fact which support this as last 2 rallies also lasted between 8-10 trading sessions. Also Fibo Fan are also showing Nifty

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Harmonic pattern Trading :Auropharma,Bata India and CESC

Auro Pharama

Close below 770 short term target comes at 754.

Buy above 778 Tgt..

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Nifty Weekly Analysis for 18-22 Aug

Last Week we gave Chopad level of 7620, Nifty did  2 target on upside. Resurfacing of Geopolitical  risk and bad macro data was not able to stop the bull rally, Now we are near the crucial zone of 7800-7840 which will be fought fiercely between both bulls and bears. Lets analyze how to trade Nifty in coming  week.

 Nifty Hourly Chart

Nifty Hourly charts shows have been trading in a channel, now currently trading near  the channel top which is around 7820-7840, any break above it nifty can head towards 7900 odd levels. Bearish only below ...

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How to trade Intraday and Positional Calls

I have been giving Intraday and Positional calls on my site, as many traders are asking me how to trade them. Please use the below points to trade the calls. I would request traders to do paper trade on both intraday and positional calls for sometime and once you are comfortable start trading in cash market before jumping in Futures.

How to take Intraday Trades

These were trading level of Hindalco in Friday's Analysis

Intraday traders can use below levels to trade

Buy above 181 Tgt 183,185 and 189 SL 180

Sell below 176 Tgt 173,170 and 168 SL 179

1. Buy Trigger Point is 181, Now there are 3 cases possible at opening trade @ 9:15 a) Hindalco Open above 181 b) Hindalco Opens below 181 c) Hindalco Opens at 181
Lets take each case 1 by 1
a) Hindalco Open above 181 -- In this case

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How to trade Choppy/Sideways Market

During one of my trading session, a student told me
"Sir I am a small trader , I make good money in trending market but when market goes sideways/choppy i lose my profit and most of my trading capital".

I asked him, Do you know the difference between trending and choppy market, He said Yes. Than i said "Why you do not stop trading when market are choppy" , He did not have any answer.  I continued saying its not a problem with you in particular but with most of traders and summarized it as
"Many traders trade during choppy market condition because they feel that ‘itch’ to be in the markets all the time. they think they’ll miss out on opportunities if they don’t trade all the time. Don’t worry about ‘missing out’ on opportunities, the market is not going anywhere and it’s better to be slow and methodical than fast and impulsive when it comes to trading your hard-earned money in the markets."

What exactly is a ‘choppy’ or market?

First off, in order to know the best times to avoid trading , we need to be able to distinguish between market conditions that are worth trading vs. those not wroth trading. So, this involves having a thorough understanding  how to visually observe this price action and determine whether it’s trending, range-bound, or chopping sideways.
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Only Six Percent Make The Cut As Professional Traders

Only six percent of the people who attempt to become professional traders actually succeed. Why do most fail?

Lack of passion

When people come into the world of trading many think that they only need to learn a strategy and follow the rules of that strategy. And, there are some people who actually do this for awhile. The problem with those who do not first get a good foundation of the markets is that when the markets change or when they have a drawdown, they start making mistakes. Those mistakes lead to self-sabotage even in the healthiest of minds.
There are those who are only trading to make money. The process of trading is not enjoyable to them at all. When you do something you do not enjoy, eventually your subconscious mind will figure out ways to make you stop.
Those who start out with passion very often find that those feeling are not there any more when they realize how much work and in some cases sacrifice there is to becoming a trader. When the passion goes, the motivation goes.

Lack of money

Any entrepreneurial endeavor needs money to make the business profitable. Too many people come into the trading business with the idea that the money will somehow appear, someone will give

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How to be Successful in Trading

Trading is a very complex undertaking and if you miss one element you will likely eventually fail  in this endeavor.

Here are the four different elements we must have working for us for success in trading:

The Knowledge

If we don’t do the homework to know what we need to know we will fail due to ignorance. Understanding historical price action, reading books by and about the best traders, seminars, mentor-ships, and  systems testing is all part of the homework we must do to get the needed knowledge.

The Resources

While trading with a small account is a good place to start it is not a good place to stay. Traders must be adequately capitalized for meaningful trading. We must have an affordable ..

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Tata Motors,Century Textile and SAIL technical analysis

Tata Motors

Positional traders should look for 433, Closing below 434 stock is heading towards 411, Closing above 433 short term target 442/450.

Intraday Traders can use the below mentioned levels

Buy above 434 Tgt..

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Bank Nifty Weekly Analysis for 11-14 Aug

Last Week we gave Chopad Level of 15176  Bank Nifty did 2 target on downside and on upside got stopped out, rewarding Chopad Followers with 350 points . Lets analyze how to trade Bank Nifty in coming week.

Bank Nifty Hourly

Bank Nifty hourly charts has formed  Bearish Island Gap pattern, Till 14986-15000 is not taken out, Rallies will be used to Exit long and fresh shorts will come in Bank Nifty. Classic TA at work with ..

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Nifty Weekly Analysis for 11-14 Aug

Last Week we gave Chopad level of 7765, Nifty did  2 target on downside rewarding trend follower with 164 points. Lets analyze how to trade Nifty in RBI Week.

 Nifty Hourly Chart

Nifty Hourly charts shows have been trading in a channel, now currently trading near  the channel bottom which is around 7540 , any break below it the current uptrend can come to an end, Holding the same ...

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Trading Lesson Learnt From my Trading Guru Part-III

In Continuation with the previous 2 articles
Trading Lesson Learnt From my Trading Guru
Valuable Trading Lesson Learnt From my Trading Guru Part-II
Before starting the article a small note, If You Really Enjoy my article, Could you please do me a ‘Huge favor’ after you have finished reading today’s lesson. Please click the Facebook Link below this article. Most importantly, make sure you share your feedback by using the comment box below. I appreciate your support.
 “Have the courage to trade in big quantity ”
He meant the willingness to carry a very, very large position when you have a high degree of conviction and the risk/reward makes sense.
This is actually the flip side of  My Guru's last pearl of wisdom- when there’s nothing to do, do nothing. But when there’s something worth doing, then do it in size.
Geroge Soros frequently talks about this, because it’s a common trait of all great traders. In order to be a big winner, you have to be very, very large in the positions that have the best risk/reward. Considering that most traders make their year on two or three big trades, then you have to pile in when you see an opportunity.
The key question is: how do you judge when to trade big quantity ?

The answer: you have to rank your positions in terms of overall attractiveness

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Nifty breaks 50 SMA, FII Data Analysis

• FII's sold 72009 contract of Index Future worth 2720 cores, 44.4  K Long contract were squared off and 27.5  K short contracts were added by FII's. Net Open Interest decreased  by 16.9  K contract.FII's went into panic mode today after a big gap down and squared off Huge Long Position in Index Futures which were getting rollovered from March Series. This Kind of single day selling was seen way back in 2010 so looks quiet scary.The surprising thing is that NF range today was just 58 points and we saw no major decline in Nifty after gap down suggesting FII's were able to exit there long position without creating any major panic in market.

Nifty closed below its 50 DMA, after big gap down today, Here is the interesting part Last time NS broke its 50 SMA was on..

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Nifty ready for decisive move, Will SBI provide the trigger?

• FII's sold 10985 contract of Index Future worth 419 cores, 15.6  K Long contract were squared off and 4.6  K short contracts were squared off by FII's. Net Open Interest decreased  by 20.2 K contract.FII's exited both long and shorts today with Nifty giving volatile move.

Nifty closed below its 20 DMA, Yo YO swing between Bulls and bears Continue today also with nifty swinging wildly between 7630-7709. We also have a freak trade today when NIfty Future jumped from 7709 to 7748 in matter of 4 minutes between  1:54-1:58.  If data is observed 338 contracts of NF got traded at 7709 and than 9828 contract got traded at 7748. Nifty has been frustrating

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India Cement,Bharat Forge and IRB positional trading calls

India Cement

India Cements have started its 'C' wave closing below 102 gives short term target of 97.

Buy above 105.8 Tgt..

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Nifty near inflexion point, Will 50 SMA hold ?

• FII's sold 8476 contract of Index Future worth 323 cores, 8.6  K Long contract were added  and 17.1 K short contracts were added by FII's. Net Open Interest increased  by 25840  contract.FII's added shorts aggressively in Index Futures today.

Nifty closed near its 20 DMA, and break of 7668 and sustained below this will give indication of gap filling from 7622-7601. Nifty has been frustrating the traders from past 3 trading sessions as going up and down alternate day, triggering SL of Trend followers. Traders need to understand, market cannot move in straight line and will trade in a range like currently

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Nifty Technical Analysis before RBI event

• FII's bought 7492  contract of Index Future worth 289 cores, 9.1  K Long contract were added  and 1.6 K short contracts were added by FII's. Net Open Interest increased  by 10.8 K contract.

• We have RBI Policy tomorrow, Nifty today 21 HEMA@7694 and nears 34 HEMA @7715 closing above it on 2 hour basis will confirm a fresh uptrend else the down move will resume.

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Trade Harmonic Pattern:DLF,Canara Bank and Auro Pharama

DLF

199 should be watched closely in DLF, any close below it stock is heading towards 190 and 178.

Buy above 202 Tgt

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The Tortoise vs. The Hare – A Trading Metaphor

Everyone knows the story of the Tortoise and the Hare, but what you might not know is that it can be a very effective metaphor to describe the differences between winning and losing traders. Like the Hare, you probably experienced a lot of excitement and success right out of the gate, as you began trading your first live account. However, because you probably did not pace yourself by being consistent in your approach, you saw your early success evaporate as time went on, just as the Hare did. The Tortoise was much slower than the Hare, but because he was consistent and unemotional, he eventually won the race as you probably know. Thus, your goal as a trader, is to trade more like the Tortoise and less like the Hare, because that is how the trading game is won…

Are you a “Tortoise” or a “Hare” in the market?

In the fable of The Tortoise and the Hare, the Hare begins the race by ridiculing the slow-moving Tortoise and then leaving him behind in the dust as he sprints off from the starting line. The Tortoise, unemotional but sure of himself, begins the race in a slow but consistent manner, pacing himself from the start. The Hare gets distracted by other animals along the way, stopping to show off his speed as he tries to impress some lady rabbits (in the Disney video version) and as we all know, stopping for a nap along the way as well. Unfortunately for the Hare, this inconsistency and emotion gets the better of him and ultimately is the reason why he loses to the much slower Tortoise, even though he started with a huge physical advantage. The Tortoise may have had a disadvantage physically, but because his mindset was more consistent and in-sync with what it took to win the race, he out-lasted the haphazard and emotional Hare, and ultimately made it across the finish line first.

This fable of the Tortoise and the Hare really does a good job of describing the primary differences between traders who consistently lose money in the market and those who consistently make money.


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Nifty gets global jitters,FII Data Analysis

• FII's sold 29978  contract of Index Future worth 1145 cores, 24.1  K Long contract were squared off and 5.8 K short contracts were added by FII's. Net Open Interest decreased  by 18.2 K contract. With fall of 127 points FII's have added few shorts and mostly profit booking in existing long contracts.

As discussed yesterday EW analysis any break below 7650, Nifty can break down till 7581 , Low made today was 7593.NIfty is near an important support @ 50 DMA which if held can see bounceback till

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Valuable Trading Lesson Learnt From my Trading Guru Part-II

Continuing with my previous week article Trading Lesson Learnt From my Trading Guru
I hope many traders who are trading or willing to start trading will be facing with the same dilemma and confusion so today am sharing few fundas i got from my trading guru. Use them and see the change in your trading.

 As a traders its not mandatory to be in market all the time.

The basic mindset of amateur trader is we are  supposed to have a position, in market all the time.
My GURU Answer: Emphatic NO.
This is one of the most difficult things to learn. Psychologically, it feels strange to have no position. It can feel like we aren’t working or that we don’t have a view on the markets.
My Guru said if you didn’t have a strong view on any market, then stay out of market. Money Saved is money earned. When there was nothing to do, he did nothing. He would say “It’s better to have no position than a dumb one”. By allowing himself to skip dumb that were driven by boredom frustration, he avoided trades that were likely to lose him money  Thus, he could wait comfortably until the really profitable trades appeared and get the most out of it.
While such an approach seemingly demands the patience of a saint, it is actually easier to sustain long-term. Once you have a methodology and are comfortable with it, Like our PAC strategy , Once we are in the trend we just sit on our positions and let the market reward for our patience.
Thus, the ability not to have a position is a reflection of you doing something else right—having a methodology and a rigorous, disciplined adherence to it.

If you want to make big money

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