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Nifty finally closed above Gann resistance of 17850 after a tough fight of 11 trading days. Now till it closes above this level, chances of upward breakout is high. But remember if nifty dips and closes below 17840 then weakness will increase. I clearly indicated last week that the 500 point fall in Nifty was not at all convincing, so eventually nifty rallied towards all time high. View remains same as explained last week.
I want you to prepare yourself for all possibilities ,as October is historically a very volatile month. We can witness following scenario in coming days ahead:-
Possibility 1-
Nifty does not close at a new life high then chances of reversal and a down trend starts immediately.
Possibility 2-
If Nifty makes a new life high on closing basis both in spot and future then BIG POWERFUL RALLY can take place till 21st October(+/- one day) and that will be the ULTIMATE and FINAL TOP of 2021.
Just follow your risk appetite and plan your trade accordingly.Do not short rather try to go long, if you see new life high both in spot and future. KEEP SOME SEPARATE FUND to be deployed around 21st October.
F&O Trade setup-
REMEMBER THE RULE SUPPORT CAN BECOME RESISTANCE AND VICE-VERSA
Major Gann support levels for this week are 17840-17600-17450-17280-17000-16900-16700 Creating long trades near Gann support levels is suitable only for highly disciplined traders with strict SL below support zones. Major Gann resistance levels are 17950-18088-18230-18265-18452-18777-18825.
GANN TIME CYCLE TRADES--
HIGH RISK & HIGH REWARD TRADES --THOSE WHO DO NOT WISH TO GO AGAINST TREND SHOULD AVOID THIS COLUMN.
NIFTY HAS RUN UP QUITE A LOT SINCE FEB 2021 HIGH AND CORRECTED VERY SMALL IN BETWEEN JUST 500 OR 1200 POINTS APPROX TILL TODAY.THOSE WAITING FOR A MEANINGFUL CORRECTIONS MUST BE FED UP BY NOW. WHAT I AM TRYING HERE TO DO IS THE MOST DIFFICULT TASK OF FINDING A BULL MARKET TOP.
THE PRESENT BULL MARKET RALLY CAN NOT SUSTAIN BEYOND 21ST OCTOBER 2021. AS PER MY STUDY IT IS TIME TO TIGHTEN YOUR BELT , AS WE MAY WITNESS SUDDEN DEATH IN THE MARKET ANYTIME .
THOSE WHO ARE HOLDING DEC EXPIRY 16500 AND 17000 PUTS , MUST HOLD AND ADD MORE PUTS OF 17500 & 18000 NEAR GANN PRESSURE PRICE AND TIME ZONE, IF YOUR POCKET ALLOWS IT.
YOU ARE FREE TO BOOK PARTIAL PROFITS ANY TIME IF YOU HAVE MULTIPLE LOTS OF PUTS BUT DO HOLD SOME POSITIONS TILL YOU GET A MEANINGFUL CORRECTIONS OF 3000 TO 5000 POINTS IN NIFTY.
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
BATA INDIA FUTURE(OCT)
F&O TRADE SETUP :- TREND -BULLISH TILL IT STAYS ABOVE 1820 . Strong Gann support zones 1930-1900-1875-1820 Strong Gann Resistance zones-2005-2030-2115-2130
TRADING STRATEGY- Buy near support or breakout of resistance and Short near resistance or break down of support. Stop loss above and below the zones as per trading position. Profit booking targets are next zones or as per individual risk appetite. TAKE MAJORITY TRADES IN THE DIRECTION OF TREND.
BANDHAN BANK FUTURE(OCT)
F&O TRADE SETUP :- TREND - BULLISH TILL ABOVE 319. Strong Gann support zones 329-319-300-274 Strong Gann Resistance zones 360-376-405-442
TRADING STRATEGY- Buy near support or breakout of resistance and Short near resistance or break down of support. Stop loss above and below the zones as per trading position. Profit booking targets are next zones or as per individual risk appetite.TAKE MAJORITY TRADES IN THE DIRECTION OF TREND.