Channel Play in Nifty Revealed......



If you think that nifty moves randomly anywhere any-time, then I am sure this post is going to challenge the way you think as I am going to reveal the channel play going in nifty since past nine months now. This channel play reveals how nifty is moving in a particular channel now.

Before we move further let's have a look at the chart below:




















This charts shows the movement of nifty from May 2014 till now. As we can see starting from may last year nifty is moving in a channel, every time the stock tests lower point of the channel it start moving up and with the test of the upper channel it start coming downward. In November 2014 as we can say nifty tried to break the upper channel for more than a month and was unable to break the trend line.

The lower support line has been tested 6 times now and every-time nifty bounce back from that levels. One may say that the index movement is as per news, investor sentiments or global clues but unknown of all these facts if anyone just look at the charts he can spot where nifty is heading towards. Now one may ask how long this will continue? Well.. as long as the channel is not broken on either side this movement will continue.

If there is a breakdown from this trend line nifty will turn bearish and if there is breakout nifty will turn more bullish. As of now nifty is moving within this channel with the overall movement towards the sky so we can relax as we are in a bull market now. I am sure many of you must be thinking to comment where to find the charts of nifty or any stock so here is the direct link for you people you can go to it draw trend lines and analyze your charts there on:

http://chartink.com/stocks/nifty.html

So that's all friends we are done, many people have a habit of stretching simple thing in big posts while I believe in putting as much as I can as simply and directly as possible which I have already done in my first e-book "The Trader's Code" and people are loving it. I will continue the same approach in future as well. Stay tuned for EW analysis of nifty...

Happy Investing
Abhishek Ninaniya
The Stock King

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7 comments

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Crick_Love
AUTHOR
January 21, 2015 at 9:57 PM delete

Abhishek good observation again. so, as per this chart..8800-8900 seems to be upper band for the next few weeks and after that it might test 8300 in the lower side. is that how you read it? thx

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January 22, 2015 at 12:51 AM delete

exactly................. have been using this for a couple of months now

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Alan Cardoz
AUTHOR
January 22, 2015 at 10:24 AM delete

Awesome analysis Abhishek ... (y) (y) (y) ... thank u very much ... I'm getting to learna lot from you

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January 22, 2015 at 10:00 PM delete

keep learning keep earning..................

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dks
AUTHOR
January 22, 2015 at 10:09 PM delete

Excellent.... thanks....

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sridhar
AUTHOR
January 23, 2015 at 11:42 PM delete

Hi Abhishek , With today's move could we consider this as a channel breakout. Thanks ffor starting the articles on options .

- Sridhar

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January 24, 2015 at 12:07 AM delete

no buddy channel will be broken at around 8940 levels not now, thats the point from where i am expecting nifty to reverse................

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