Sunday, January 1, 2012

"AGNI BREAKS OPEN CIPHER" – Nifty Day Traders Manthra (revised)

"AGNI BREAKS OPEN CIPHER" – Nifty Day Traders Manthra (revised)
While trading intra day in Nifty and Mini Nifty, Nandi found that “AGNI BREAKS OPEN CIPHER” Manthra is very helpful to decide upon whether to BUY or SELL and also for putting stop losses. This is a improved Manthra from "AGNI BREAKS OPEN PREMIUM" posted on 13 June 2010.

AGNI – The Agni level being given in vipanisangeetham. If Nifty is above the Agni level, then it is positive. Otherwise negative.

BREAKS – It was earlier explained under the title “Yada Yada Hi Dharmasya”.
For the convenience of new visitors it is explained again.
At the opening of market (9.15 a.m.), 9.20 a.m, 9.30 a.m. and every half an hour there after or whenever there is large swing in the Nifty, note down the maximum and minimum in the Nifty futures(50). Check whether the upper or lower figure is BREAKING. If upper figure is breaking then it is positive and if lower figure is breaking it is negative. After reaching a high or low Nifty may retrace. If the retracement is more than 20 points take the reverse of the last sign.

OPEN – It is the opening figure of Nifty futures(50). If Nifty futures is trading above the opening figure it is positive. Otherwise it is negative.

CIPHER – Cipher means digital zero. If spot Nifty is trading above last day closing it is positive, otherwise negative. When Nifty spot figure is trading same as last day closing figure the difference is zero and hence “cipher”.

The following deductions can be arrived at from the above four indicators.

A. All four positive - the market is bullish and hence go long
B. All four negative – the market is bearish and hence go short.
C. Three positives and one negative – Net positive and hence go long
D. Three negatives and one positive – Net negative and hence go short.
E. Two positives and two negatives – Market is indecisive and hence wait till trend is clear.

This method may be suitable to you or may not be. Observe yourself for a few days and if it suits to you, start trading in Mini Nifty(20) and increase the volume later on. Wish you a bon voyage.

Notes on PREMIUM – Premium is the difference between Nifty futures(50) and Nifty Spot. If Nifty is trading above the spot it is in PREMIUM and hence positive. If Nifty is trading in discount it is negative. During the last six months when down fall continued it was found that premium was absent very rarely and prevented from shorting, hence it was replaced with “cipher”. It was also found that high premium (above) twenty on current months futures was actually negative sign.

Positional trade based on Agni level alone.
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When ever spot Nifty is trading above Agni level it is a positive signal and go long.
When ever spot Nifty is trading below Agni level it is a negative signal and go short. When Nifty spot moves from below to above (of Agni level) or from above to below allow eight points before acting upon it, as Agni level is having a band width of sixteen points. After initiating first trade, add to it on stages given below (pyramiding) and book profits at every 100 points gain.

Stages: 6355 – 6192 – 6154 – 6080 – 5952 – 5888 – 5824 – 5797 – 5680 – 5642 – 5555 – 5464 – 5424 – 5376 – 5312 – 5286 – 5168 – 5123 – 5056 – 4960 – 4912 – 4859 – 4800 – 4759 – 4656 – 4612 – 4544 – 4464 – 4348 – 4232 – 4100 – 3968.

4 comments:

S N said...

Sir,

Kindly clarify my doubt on your statement of Agni Breaks open cipher. When breaks - After reaching a high or low Nifty may retrace. If the retracement is more than 20 points take the reverse of the last sign.

My doubt is as follows : After reaching a low, say 4620, if retraces and if retracement is more than 20 points, say it touches 4645, what should we do to reverse ? SHOULD WE GO LONG FROM 4745 or go short from 4745 ? Thanks.

Nandi said...

Dear SN,
After reaching a low, say 4620, if retraces and if retracement is more than 20 points, say it touches 4645, then "Breaks" sign turns positive. That doesn't prompt any action. You have to consider other three factors also and decide what to do.

Guru Krishnan said...

Hi,

I have a query on this. If Agni is Negative, Open is negative and Cipher is also Negative but break has not happened and also found that if the break happened from upside open turns out to be positive. So in this case its better to wait and then trade or since net is negative now, can one initiate a trade?

Nandi said...

Dear Guru Krishnan,
There is no confusion here, initiate the trade. Even if break is up net is negative only. That's why in day trade chart posted on 1st Jan 2013 break is ignored.

Best wishes