Nifty 50 has broken all-time highs again, as expected and mentioned in the previous video analysis. When trading our supply and demand strategy, you don’t need to pay attention to any fundamentals or earnings announcements; we base our entries on new imbalances.
It’s very important to trade this strong impulse in the context of a bigger-picture trend and avoid trading counter-trend scenarios. How can you buy the Nifty 50 futures index or Nifty 50-related stocks in an uptrend? First, you must look for impulses strong enough to create a series of wide candlestick bodies in the direction of the long-term trend. The chart attached shows a few impulses drawn on the Nifty 50 futures weekly timeframe, which means that every candlestick represents a week if time.
All-time highs around 12,100 have been broken again, as expected, once Nifty 50 retraced to monthly demand imbalance around 10,851. A brand new imbalance has been created slightly higher, around 11,181. The price might take some time to retrace to that level on the Nifty 50 index.
But remember, this is a long-term technical analysis; you can use lower timeframes to go long or even use other trading strategies, but please, if you do so, do not think of selling Nifty 50, only plan long positions.
Nifty is owned and managed by India Index Services and Products (IISL), a wholly-owned subsidiary of the NSE Strategic Investment Corporation Limited. IISL had a marketing and licensing agreement with Standard & Poor’s for co-branding equity indices until 2013. The Nifty 50 was launched on 1 April 1996 and is one of the many stock indices of Nifty.
Trading Nifty 50 NSE futures index supply and demand imbalances is ideal for beginners and those with full or half-time jobs. You won’t need to stay in front of the computer all day long trying to move by trading Nifty 50 NSE futures index price action. With your mind.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control on the Trading Nifty 50 NSE futures index, earnings do the opposite and react strongly to those imbalances. Why do you see positive earnings, then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.
Unless you are doing very short-term trading on Trading Nifty 50 NSE futures index and scalping, you should not worry about fundamentals or earnings announcements.
You can use these imbalances to plan your trades on Trading Nifty 50 NSE futures index options in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name, and it’s called the waiting game. We need to patiently wait for the correct scenarios on the Bank Nifty Indian index and setups to happen and wait for the price to a pullback or dip into the Trading Nifty 50 NSE futures index price levels we want to trade, in our case, these price levels are made of supply and demand imbalances.
There are several ways of buying stocks. When trading stocks, you can buy shares of the underlying stock or use Trading Nifty 50 NSE futures index options strategies to go long or short at these specific supply and demand levels on Trading Nifty 50 NSE futures index, long calls or long puts or spreads. You can even buy a CFD (contracts for difference) if you are in a country where it’s allowed.