NSE Nifty Technical Analysis – Buy Setup:
If you are watching Stocks, especially NSE Nifty Technical Charts, since 14th April, 2015, Nifty is moving to the South side and reached the lowest point of 7992, which is previous Support Area. This was the lowest point on 16th December, 2014.
CNX Nifty Daily Chart:
In Daily Chart, Nifty has touched the previous Support line on 7th May, 2015 and on 8th May, a Green Candle has formed. Exactly, at this point an “Abandoned Baby Pattern” has been formed. As the price has touched the Support Line and bouncing off from that point, we can find “confluence” with the “abandoned baby pattern. Based on this setup, we may expect NSE Nifty to move to the upside.
CNX Nifty H4 Chart:
If we switch down to the 4 Hours Chart, we can see the Stochastic Signal and a fantastic “MACD Divergence Pattern”. Price is making Lower Lows, but MACD is making Higher Lows.
As we find patterns like, “Abandoned Baby, Stochastic cross and MACD Divergence” at Strong Support Area, we may expect NSE Nifty to the upside.
If we Buy at 8185 area, we can put our Stop Lass at some points below to the Support(7992) and Target the near Resistance area of 8460.
Note: Follow strict money management principles when using NSE Nifty Technical Analysis – Buy Setup.
NSE Nifty Update:
We have analysed about NSE Nifty Daily Chart on 10th May, 2015 and decided to Buy at 8185 and Targeted for 8460. After 11 Days, we have reached our Target and profited with 275 Nifty Points. See the Image below:
Right now, NSE Nifty is at Near Trend Line Resistance. So, it is advised to Exit the Buy positions and wait for the next setups. Look for Candle Stick Patterns below or above Trend Line and analyze again.