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Nifty has shown tremendous volatility from the budget day and it was able to make new life high in a straight line unprecedented rally.Now the major question is - Is the "TREND REVERSAL " has happened and are we going to see new Bull market from here? As per my understanding of Gann system this move was definitely surprising but is not confirming "TREND REVERSAL". In fact this was just a short covering rally which further confirms the "Culmination of ongoing BULL MARKET" is very nearby.
So now what strategy a trader should adopt? Major Gann resistance zone exists near "15000-15050" and "15270-15340"-"15540-15625" .Nifty has already reached the first resistance zone and we can expect a minimum correction of 600-700 points from here. Short term traders can short nifty near these zones or buy ATM puts with stop loss above these zones on closing basis. Any closing below 14300 will confirm start of very deep corrections. Gann support levels/zones are "14700-14730"- "14550-14575"-" 14300-14335"- "14200-14250"-"14050-14080". Creating long trades near Gann support levels is suitable only for highly disciplined traders with strict SL below support zones.
HIGH RISK AND LONG TERM F&O TRADERS WHO ARE HOLDING SOME POSITION IN NIFTY MARCH PUTS CAN ADD FURTHER POSITIONS AND THOSE AIMING FOR VERY BIG GAIN (PROFIT 2000++ POINTS) MUST START ADDING JUNE 2021 ATM PUTS ON EVERY RISE.
TRADing RULES AS PER GANN SYSTEM :
* ALL THE TRADE SETUPS GIVEN ARE VALID FOR THE WEEK ONLY.
Profit booking levels are not mentioned as either you can book profit near Gann support or as per your risk appetite . Trend following and maximizing profit is an ART which is taught to all Gann students at ART OF TRADING
STOCKS RECOMMENDATIONS ARE DISCONTINUED DUE TO HIGH VOLATILITY AND HIGH RISK ENVIRONMENT.
IT WILL START ONCE THE VOLATILITY SUBSIDES AND RISK FACTORS ARE MINIMIZED.