Today I would like place my thoughts on broader index first.
For today Nifty 50 opened Gap down. A beautiful Hammer candle can be seen in the 10-minute chart. This hammer took support near 14425 levels. See the chart below for more information.
Now the zone of 14425 becomes important here. The index retraced 61.8 % of the up move that started from 22nd April which ended on 29th April at 14425 levels.
From around 9:30 to 2:00 the broader index meandered sideways. Later, the index rose to find Resistance near 14670 levels. In the process, the index filled the Gap as well by the end of the day.
That's the story of the Nifty for today. While it moved sideways for good part of the day, I had difficulty spotting the opportunities. In the back of the mind the indecisiveness dominated all other thoughts.
The holiday mentality set in me. To give an example, "Anyway price is moving sideways. Take it easy." were the kind of thoughts running in my mind.
But from the above chart one can see a beautiful opportunity arose from 2:00 p.m. onward.
Axis Bank Case:
In this Axis bank chart below, an arrow is marked. That was
the point when I was considering going long. Somehow because of the sideways
market, I was in dilemma to enter the trade. Please refer the 5-minute chart of Axis Bank scrip below.
After the down wick candle [seen near arrow], we can see all
medium sized red candles which gave indication that down move was being
arrested. Then a Bullish candle arrived on the scene and engulfed previous 4
candles. Even then there was opportunity. I didn't take the trade.
My focus was lost due to sideways market and I had moved on to see different charts.
High level of concentration is must during trading. After finishing my lunch I revisited Axis chart to find it roaring near 702 levels. I got dismayed but the lesson was taught.
Lesson:
Be focused throughout the trading hours. Opportunity can come anytime.
See to it that the holiday mentality doesn’t numb you during market hours. Even sideways market has lessons to teach you. You have to be present there on the receiving end.