Ichimoku Indian Stock Market Trade of the week

Ichimoku Indian Stock Market Trade of the week.    At the beginning of the week, we started with price being at a major long term resistance.   Figure 1 shows the monthly chart for the NIFTY Indian stock market.

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Figure 1:  eSignal Monthly chart of the Indian NIFTY Stock market

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Figure 2:  eSignal Daily chart of the Indian Stock BAJAJHLDNG.EQ-NSE

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Figure 3:  eSignal Weekly chart of the Indian Stock BAJAJHLDNG.EQ-NSE

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Figure 4:  eSignal Monthly chart of the Indian Stock BAJAJHLDNG.EQ-NSE

Figure 5 shows the 240m time frame for the stock.   Notice, it is a not a major resistance on this time frame.   The reason is that the stock has been consolidating.     In fact, if it gets to the higher time frame resistance of 1527, it will be a bullish trend on this time frame.

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Figure 5:  eSignal 240m chart of the Indian Stock BAJAJHLDNG.EQ-NSE

Therefore, if we take a trade solely off the higher time frame, we need to make sure the risk is very low.  The trade needs to be a pull back entry off the daily time frame.  Here is the chart setup:(Figure 6)

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Figure 6:  eSignal Daily chart Setup Trade

On March 31, the trade entered and it got to our target within 1 hour and 15 minutes.   Here is the chart (Figure 7)

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Figure 7:  eSignal Daily chart Trade Exit

As a result, we set our scans to look for a multiple time frame resistance on the Daily, Weekly and Monthly time frame.   It was a MTF on the higher time frames only because the markets have been going up and it wouldn’t make sense for an instrument to have a MTF on the lower and the higher right now.   This can only occur once the markets start to go down.

During our scans, we can across a stock BAJAJHLDNG.EQ-NSE, Baja  Holdings.   It had the same resistance at 1527 for the Daily, Weekly, and monthly time frame.   Here are the charts:

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About the Author Manesh Patel