Intra-Day Trading Plan for Nifty and Axis Bank

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Nifty


In my last article, I had highlighted that on Monday morning I will share information about the index and AXIS Bank Ltd (NS:). Hence, in this article, I will look at the important intra-day levels for the stock and the index. However, if you would like to see the future free charts and analysis shared by me, then keep a track of my Twitter handle every morning. This is as I cannot pen an article every day because of time restrictions hence I update investors this way. Moreover, the charts highlighted below have already been shared this morning before the market opened on the social media handle.

Now, when coming to the Nifty index’s intra-day chart, we see that the index is at an important crossroad. I say this as the index has had a healthy breakout above one resistance level. However, this is not a clear sign to buy, as there is a robust candle resistance zone around the Rs 11,450 price level. Moreover, slightly above this level, there is also a prior falling window which will act as future resistance. Furthermore, the 200-day moving average is right below the falling window which is another resistance zone. Hence, if the index gets a clean close above the 200-day MA, then is only when we can expect a strong rise in the intraday time frame. However, the possibility of this happening is fully dependent on the general public’s reaction to the exit polls. Now coming to the support zones. We see that the closest support zone is at the Rs 11,395.90 price level and provides support to the current candle. However, if the index were to break below this level, then the index will most definitely fall till the support zone at Rs 11,539.82.

Axis Bank

Now coming to the intra-day chart of Axis Bank, we see that the equity has had a sharp rise which has resulted in the stock being at a crossroad. I say this as the current candle has partially broken through a resistance level at Rs 750.50. However, the stock is not out of danger as of yet as there is a tough resistance level at Rs 753.50. I used the word tough as this resistance level has been tested numerous times in the past and has managed to stop a rise from occurring. Hence, a close above this level will be very bullish on an intraday basis. Now coming to the support we see the stock’s current candle has taken support from the Rs 746.70 price level. Moreover, the next two support zones are at Rs 743.50 and Rs 740.90.

The key question I received from many readers of my last article on Saturday is whether the market will go up or down on Monday. This is a tough one to answer as it depends on how much trust the general public puts on exit polls. I say this as historically in India the exit polls have not been very accurate. This is the exact reason I have highlighted the upside and downside potential of the above-discussed stock and index. Hence, I would advise traders to watch the first 30 mins of the market as it will determine how the week will go till Thursday. Once the 30 mins are done then is when you can see where the index/stock is in comparison to the levels shared above so as to make the final call. However, you can expect Mr. Modi’s fans who are investors to cause a burst in the index in the first hour of trading as they will be excited that the exit polls show him having a majority. Hence, if you are nimble enough to trade this period then do so as it will be very rewarding with its wild swings. However, if you aren’t that nimble in adjusting the positions on an intra-day and can’t stomach high levels of risk then I advise you to watch the bout from the ringside.

Lastly, do keep a track of the Twitter handle as everyday charts will be uploaded and each of this week’s charts will be on an intraday basis. I am doing this as it will help traders understand entry and exit points in this turbulent time of elections. This is as I don’t advise anyone to carry positions overnight as of now due to the high-risk nature of the elections.

Original Post

Disclaimer: The investments discussed by Sandeep Singh Ahluwalia may not be suitable for all investors. Therefore, you must trust your analysis and judgment the equity before making investment decisions. The report provided is for informational purpose only and should not be interpreted as a proposition to buy or sell any securities.





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