$NIFTY Indian Stock Market Update. Going higher still?

$NIFTY Indian Stock Market Update.   Going higher still?   The Indian stock market has been on a strong bullish trend lately.   Will it continue to go is the major question everyone has?    We will allow technical analysis to tell us this for our monthly India market update.

Note:  All charts are provided by TradingView for this article

Below is the monthly chart

2017-04-01_101810nifty_m

Since Feb 2004, the India stock market has been in a long term bullish trend.   It has gone through consolidation pattern and major pull backs but that bullish trend still has remain intact.    Since 2015, we reached a high and formed a big consolidation patter from 6854 to 8899.   Last month, we had tested the major resistance for the third time.   The question was, will we break it in the month of March.  The answer is yes and we closed about it.    Now, the question is will price follow through and continue to go up.

Below is the weekly chart:

2017-04-01_102353nifty_w

The chart shows that price is still very strong after break the resistance at 8899.50.   The major resistance at 9226.75 and 9455.35 with day trading supports holding up price right now.   As long as we maintain the support at 8899.42, we have a high probability of continue to go upwards.

Below is the daily chart:

2017-04-01_102627nif_d

The daily chart is bullish with major supports below price.

Here is a list of India stocks that completely bullish:

2017-04-01_100856_bullish_india

Here is a list of India stocks that are completely2017-04-01_100933_bearish_india bearish:

 

Let’s now look for a trading opportunity.   Since the market is making new all time high, we want to keep our risk very low.  Therefore, we are going to use our scanner to find a pull back opportunity on 60m in trading direction of the higher time frame.

The stock is going to be UPL Liimited INR2 $UPL.EQ-NSE.    Here is the 60m chart for the instrument with the setup:

2017-04-01_103323_upl_60

On the 60m, price has been consolidating.   Normally for a consolidation, we will only use breakout setup.   However, for this trade, we will do a pull back for the following reasons:

  • Entire stock market is bullish
  • This is the first bullish setup with IMTF™ support (crosses) in the consolidation pattern.
  • Bearish setup zone failed only couple of bars ago indicating a possible good reverse trade.

The Reward/Risk to the preserve mode value of of 733.65 is 3.22:1 which is really good.    Once we get to preserve mode, we can take off 50% or 75% positions and lets the rest “ride” with a tighter stop.

 

In using our scanner to analyze the ASX200, we found an opportunity with $ACX-ASX $Aconex.   It was also in our Multiple time frame email alert.  It was a 4 time frame $Ichimoku buy signal.   Here

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

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About the Author Manesh Patel