Technical Review of Nifty, Before Market Open By Dr. A.K.Tyagi

The technical analysis across multiple time frames paints a complex picture for the upcoming market session, with the overall sentiment leaning towards bearish territory. Let's break down the key indicators and signals across different time frames.

Monthly, Weekly, and Daily Time Frames (Bullish):

The broader market trend remains bullish, as indicated by positive signals on the monthly, weekly, and daily time frames. This suggests a strong overall market sentiment over the longer term.

Hourly Time Frame (Bearish Above 20 Days EMA):

On the hourly time frame, a bearish sentiment emerges as the market is below the 20 days EMA. This indicates a short-term reversal or correction in the current upward trend.

Five-Minute Time Frame (Highly Bearish):

The five-minute chart presents a notably bearish scenario.

Several critical indicators contribute to this sentiment:

Price has crossed the 200-day EMA, a significant and typically bearish event. The last closed candle is positioned between the 100 and 200 EMA, reinforcing the bearish momentum. The 20-day EMA curve is below both the 50-day EMA and 100-day EMA, signalling a short-term downtrend.

Crucially, the 50-day EMA has crossed the 100-day EMA from an upward direction, providing a strong indication of a potential downward journey.

Market Outlook:

Considering the comprehensive analysis, the market is poised for a bearish opening on Monday, November 20. The likelihood of a gap down suggests a swift and potentially significant move to the downside. Traders and investors should exercise caution and closely monitor price movements, as the technical indicators strongly support a bearish stance in the immediate future.

Conclusion:

In conclusion, the combination of bullish signals on higher time frames and the

pronounced bearish indications on shorter time frames create an intriguing

dynamic in the market. Traders should remain vigilant and adapt their strategies

accordingly to navigate the potential volatility and capitalize on emerging

opportunities in this uncertain market environment.

Proposed Action Plan for Monday 20 Nov. 2023

Given the bearish signals across multiple time frames, it's important to approach Monday's trading session with caution. Here are a few strategies you might consider:

Short Positions on Gap Down Open:

If the market indeed opens with a gap down, consider initiating short positions. This strategy aligns with the bearish sentiment and can take advantage of potential downward momentum at the beginning of the session.

Intraday Trend Following:

Monitor the intraday price movements closely. If the bearish trend persists, consider entering short positions during intraday rallies or bounces. Follow the trend on the five-minute chart and exit positions if signs of a reversal appear.

Set Stop-Loss Levels:

Establish clear stop-loss levels to manage risk effectively. Given the potential volatility, having predetermined exit points can protect your capital from significant losses. Adjust these levels based on real-time price action and market Key Support and Resistance Levels:

Identify crucial support and resistance levels on the hourly and five-minute charts. These levels can act as decision points for market participants. Breakdowns below support or failures to breach resistance could provide additional confirmation for your trading decisions.

Stay Informed about News and Events:

Keep an eye on any relevant news or events that could impact the market on

Monday. Unexpected developments can quickly change the market sentiment, and being aware of such factors is crucial for making informed trading decisions.

Adapt to Real-Time Market Conditions:

Be flexible in your approach and adapt to changing market conditions. If there are signs of a shift in sentiment or unexpected price movements, be prepared to adjust your strategy accordingly.

Consider Options Strategies:

Depending on your risk tolerance and experience with options trading, you might explore strategies such as buying put options or using option spreads to hedge against potential losses or take advantage of downside movements.

Remember, trading carries inherent risks, and it's essential to be disciplined, use risk management techniques, and stay informed. Additionally, consider paper trading or using a small position size if you are uncertain about the market's direction or the effectiveness of your chosen strategy