Nifty future has today seen a bounce while trading at a major support region. Today, we have seen front-line majors bouncing after the recent sell off, this may be an indication of coming relief rally in next few trading sessions. Nifty future is more likely to head towards the 5740 area i.e its first resistance. The medium term uptrend is likely to resume and very limited downside is seen at this point in time.

Our trading strategy is to look for buying opportunities in nifty futures around support zone. In Nifty 5500 is very important region as there is 38.2% retracement level present, also rising trend line is acting as a support on weekly chart. Also, we  have seen 5 impulse waves in downward direction so a relief rally with 3 waves must be seen very soon.

Nifty future trading strategy:

Buy nifty future around 5550 for positional target of 5750 and a protective stop loss must be placed few points below 5500. Risk-reward ratio is comfortable and makes the trading risk worth taking. High risk taking traders can even buy Nifty 5600 call options at 50 with positional target as 120 and exit this position if nifty future goes below 5500 level. Article published on 11 April 13.

Friends I am sharing the following databases which has data updated till 28 March 2013. All these database are for Amibroker charting software. Download and share it with your friends and colleagues.

NSE EOD database:

http://download.ournifty.com/BhavCopy-new.rar

NSE F&O database for stocks and indices:

http://download.ournifty.com/NSE-FNO-DATA.rar

Download Getbhavcopy application latest update for NSE EOD data and NSE F&O data in Amibroker:

http://download.ournifty.com/getbhavcopy.zip

NSE IEOD 2 years data for more than 150 selected stocks and index:

http://download.ournifty.com/IntradayDB-new.rar

NSE IEOD data downloader and for MCX EOD data:

http://download.ournifty.com/NSE-IEOD-Data-Downloader.zip

MCX EOD database in amibroker format:

http://download.ournifty.com/MCXEOD.rar

Maruti Suzuki stock is in an uptrend on medium term chart. But stock is correcting on the daily chart and is now trading at support level. This support is provided by 61.8% fibonacci retracement level (High of 1639 and low of 1051), so 1275 is a strong support zone for the stock in short term.

Trading idea:

We will be looking for buying opportunity in MARUTI around 1275 for a target of 1345, with stop loss being placed at 1245 level. This is not a intraday call, traders need to keep this position open for at least 8 to 10 trading sessions. Risk to reward ratio is comfortable above 1:2, so the trade is worth taking.

Article published on 27 March 13. Watch the below video for complete technical analysis info.

India’s budget session in parliament has already began, we are hoping for new surprises from this budget. As this may be the last budget before the next general election. So it is more likely that Finance minister would be looking forward to bring in the reform in this budget, but if he fails to do so, then markets may retrace back lower. Hence, here exists very good nifty options trading opportunity for the current budget session. Below is my strategy for trading interim budget for 2013 – 2014.

Nifty Options trading strategy:

What I believe is markets can move strongly in either direction during this budget session. So here come trading opportunity in Nifty options, a traders can buy Nifty 6000 call and Nifty 5700 put option with total premium not more than 130 and targeted total premium will be 180 and then 225. Exit this strategy if premium drops to 100.

Grasim industries is another stock that is trading at a strong support level and is ready for up move, Stocks on weekly chart shows a up trend hence we only focus on buying opportunities. Recently slow stochastic has given a crossover on weekly chart so we are expecting strong buying here.
Also the chart shows that there is support at 2929, which was a resistance previously. But as price action is firmly above the resistance, so it has become a support.

Trade setup:

Trading opportunity is to look for buying this stock around 3000 for target of 3131 is few trading sessions. Stop loss for this trade must be below 2929. For medium term, stock has target of 3500 with stop loss below 2850 level. See below video for more detailed technical analysis.

Double bottom pattern is just opposite of double top pattern that we have discussed previously. This pattern is very easy to trade and learn how the market forces will be changing the direction of stock at some level. In technical analysis, this pattern offers higher chances of success if trader picks the trade with this pattern. A trader can freely apply and trade this pattern on any time frame chart as he comfortable with, even on intraday time frame chart. See how this pattern looks in below image:

How to trade (steps):

When the price action come near the second bottom area, a trader can take long positions (buy entry) into the stock, this buying opportunity is valid only for the second bottom. So next time when same level is approached by the stock then, trader must watch price action very closely because it will be no trade zone. Double bottom pattern generally provides excellent trading opportunity with higher risk reward ratio, most of the time you may see 1:2 risk reward ratio. In many cases, it is also seen as high as 1:4, so 1 part is your risk and 4 parts are reward if trade goes in your favor.

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As promised we are staring the series of the publishing videos of our technical analysis. Stock for the analysis for medium term is Bata India, watch below video for complete analysis. Buy BataIndia near 740 level for medium term target as 990 level, stop loss must be placed below 715. Risk reward ratio is very favorable to take this trade.

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Double top pattern is one of most simple and reliable pattern in technical analysis, there is high probability that a trader will predict correct move most of time. This pattern is very easy to recognize and taking positions is quite simple. You can apply this to any time frame chart may it be weekly, daily or any intraday time frame chart. Have a look at the below image.

Steps to follow:

When the price action is at the second top level one can take short entry(short position) in that stock, this short selling is applicable only for the second time and when next time (third time and so on) same level is approached then trader must remain cautious. This pattern gives you excellent risk reward ratio, most of the time you are going to get 1:2 ratio. In many case it also goes as high as 1:5, so 1 part is your risk and 5 parts are reward.

Another interesting tradable pattern is the Gartley Pattern. The Gartley pattern one of those most traded pattern, which takes advantage of higher risk reward ratio. This pattern shows major reversal points in market, also it works with slowing momentum if not reversal. So most of the time you will apply this pattern in medium term chart like weekly chart. Fibonacci retracements play important role in this pattern as reversal points are on retracement levels.

There are two types of Gartley pattern:

1. Bullish Gartley Pattern.

2. Bearish Gartley Pattern.

The bullish pattern is as seen below, its formation is quite similar to inverse head and shoulders pattern, but as you can see below point C is not on the same level as point A.

Formation and trading strategy of Bullish Gartley pattern:

1. Point B must retrace 61.8% of AX movement.
2. Point C must retrace anywhere from 38.2% to 88.6% of BA movement.
3. Point D must be 138.2% or 161.8% extension of the BC movement.
4. Point D must retrace 76.8% of AX movement. This is our selling area.

The bearish gartley pattern formation is similar to head and shoulders pattern, but as you can see the point C is below the point A, hence it is not head and shoulder pattern.

Formation of Bearish Gartley pattern and trading strategy:

1. Point B can retrace 61.8% of XA movement.
2. Point C can retrace anywhere from 38.2% to 88.6% of AB movement.
3. Point D can be 138.2% or 161.8% extension of the CD move.
4. Point D can retrace 76.8% of XA movement. Point D is our buying area.

Stop loss in this is always very strict and hence we get very cool risk reward ratio, many times around 1:5 or more. The very important reason for trading this pattern is that it is based on uncertain places where traders are most afraid to take positions, hence giving better meaning for risk.

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Idea cellular is one of our technical analysis pick today, we see a ascending triangle pattern on weekly chart. If I tell you this pattern is a bi-directional pattern so breakout in such patterns can happen in either side. So we are not certain about the trade that a trader must be taking. In such situations we should keep patience and wait for the breakout first, but as markets are extremely bullish I upside breakout in this stock as well.

Idea has recently tested its resistance level for 4th time, I am sure this level is meant to be broken very soon. Only focus on trade idea is to buy this stock only above 102, right now stock is trading at 97 level. I see upside targets as 125 and 140 in medium term. Stop loss will be placed below 97 level to protect our portfolio.

Idea weekly chart: