DR S BARATH KUMAR

 INSIDE CANDLE FORMATION  What is an inside candle? Let to make the explanation very simple. If the current candle's body and wick is within the range of the previous candle, then it is called as inside candle. Trading based on Inside candle has a high probability of success though very simple.  If the upper level is crossed, we need to go long. If the lower level is crossed, we need to go short. Of course with a STOP LOSS!! Often trading is simple, We try to make it complicated! WHAT TODAY? Today, it is an inside candle formation in both Nifty and Banknifty, though the space is more with Banknifty on the lower side. Thus i prefer BNF. How I am planning? If the upper level is crossed , in case of Nifty 17100, then we can expect a momentum of atleast 100 points. If the lower level is crossed, 16860, then a momentum of another 100 points on the downside can be expected. If the upper level is crossed in Banknifty i.e 38600, i would expect a run up till 39k If the lower level...

 Markets Ahead for the Week What happened? Though it seemed like a massive sell off, observing the Monthly candles especially in Banknifty, clearly shows that it is just a pause and not a confirmation of a bearish market.  In fact, It seems as though the bullish momentum may continue. Last two weeks were very volatile. The previous weekly candle shows aggressive selling from the higher levels. The last week candle shows buying pressure happening from the lower levels. What to expect? I expect the next week to be a sideways market and thus expect a pause candle, since the previous two weeks have given momentum on either side. How am I planning? Since I see a stiff resistance at higher levels, 40500 for BNF and 17500 for nifty, I would wait for opportunities to short these calls and would wait for Theta Decay. If by any chance, the markets make a swift higher moves, I may convert these positions into Straddle or Strangle based on the momentum. And always, all these trades would ...