Nifty : Is the Price Correction Over ??

Nifty has reached the weekly 20 EMA from where it has revered in the past. The weekly trigger line has also reached the RRZ (Reference Reversal Zone) and may start reversing any time.  However, the real confirmation of a reversal will come only if when Nifty crosses  8665. Till than the indices may oscillate in a band between 8535 and 8665 to complete the time correction.

How ONGC Short Trades Have Paid Off ??

ONGC has been in a downtrend for a while now, giving excellent opportunity to trade short.

Traders could have been rewarded handsomely had they traded short as  follows:

Trade 1 :  Short @ 450 cover @ 400.
                Profit : Rs.50 x 500 (lot size) = Rs. 25,000 per lot

Trade 2 : Short @ 405, cover @ 350
              Profit  : Rs. 55x 500=  Rs. 27,500 per lot

Trade 3 : Short @ 350, cover @   ?? (position open) Current Price : 309
               Profit  : Rs. 41 x 500 = Rs. 20,500 per lot (position still open)
Position close @305. Profit : Rs.45x500 = Rs. 22,500 per lot.

A New Bull in China ??

Shanghai Composite  hits a fresh seven year high at 3546, hitting the highest level since June 2008 and breaks above 3400 after a long consolidation. Predicted 15 days back in our post as the Triple Trend Oscillator (TTO) clearly showed a synchronized bullish alignment pattern developing on the Chinese indices !!  With all the three TO in bullish zone, China is likely to outperform the other emerging markets in near term. The Indian Nifty on the other hand has already run ahead in the last one year and shows a corrective pattern on TTO.

The rise comes at a time when Indian markets have been in corrective/consolidation mode. Could this be the beginning of a new bull market in China ??

Trend Change Forewarned

The whipsaw in Nifty 5 minutes chart was caught by the Triple Trend Oscillator well in advance as the short TO  (twin pink and blue lines) crossed over the medium TO, before the price extremes were made.

 

Will Nifty Bounce from Here ?

Nifty was unable to cross 8750 and fell below 8700 once again. Though the 15 minute TO has crossed over the hourly TO, it remains to be seen if Nifty can bounce from here.

The daily chart indicate that  15 minute TO has reached Reference Reversal Zone (RRZ) and a bounce is not ruled out. In case the Nifty makes a reversal from here, it may attempt a new high one final time.  

Intraday Trade Setup with Triple Trend Oscillator

We have received several requests to explain the intra day trade setup for TTO  and  same is illustrated in the following chart :

Go Long : The short term TO moves above the long TO.
Cover Longs : When the short TO starts falling below the long TO and the price attains one final peak.

Go Short : The shorter TO starts falling below the long TO.
Cover Shorts : When the short TO starts rising above the long TO and the price makes one final bottom.

Long and Short trade setup using 5 minutes chart

 Why is it important to monitor the short TO ??

Any trend change first changes the direction of the short TO before the same is reflected in the long TO.  Hence the short TO forewarns the impending change in trend, thus preparing the trader to act accordingly.

WOCKHARDT PHARMA : TTO saw it coming - Part 2

Update March 11,2015 :
Wockhardt Pharma trading at Rs 1,807.

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Wockhardt has been climbing vertically from its lows in a U shaped pattern as seen in the following weekly chart  and is almost certain to touch its previous high of Rs. 2000.

We had in our earlier post of April 2014 predicted  Wockhardt as a good medium and ling term investment. Since than the scrip has moved four fold to reach Rs. 1660 and is poised to touch Rs. 2000 in the next few weeks.

See our earlier posts :