How to use ELM Nifty and Bank Nifty Level Matrix

TL;DR

Learn how the Nifty Matrix and Back Nifty Matrix are prepared to identify levels and possible themes for the market, using indicators and Fibonacci projections.

Transcript

hello everyone a very warm welcome to you on behalf of elam analytics we prepare this LM Lorraine matrix for you every day this is the Nifty matrix and this is the back nifty mattress so in this video we'll be telling you how we prepare this table and how these levels or the possible themes for tomorrow are useful for the market so first let us loo... Read More

Key Insights

• 🎚️ The Nifty Matrix and Back Nifty Matrix are prepared using hourly averages, indicators, and Fibonacci projections to identify levels and themes for the market.
• 👣 The spot Nifty is analyzed to track market movement independently of derivatives, while still providing insights into Nifty Futures.
• 🎚️ The support and resistance levels in the matrix can have a small margin of error, but if a level holds, it can indicate potential market movements.
• 😘 Closing above or below the five-day high EMA or low EMA can provide signals for bullish or bearish market phases.
• ⌛ The 20-hour moving average is an important indicator for recognizing market trends.
• 🤩 The Nifty Matrix and Back Nifty Matrix can be effectively used in trading Nifty and Back Nifty futures by identifying key levels and targets.
• 📣 Gaps in the market can result in support or resistance levels becoming more significant.

Questions & Answers

Q: What factors are considered when preparing the Nifty Matrix?

The Nifty Matrix takes into account hourly averages, indicators like CCI and RSI, moving averages, and Fibonacci projections. These values help identify key levels and potential themes for the market.

Q: Why is the spot Nifty used as the basis for the analysis?

The spot Nifty is used because it is not affected by premiums, discounts, or open interest related to derivative positions. Analyzing the spot Nifty can provide insights into the movement of Nifty Futures.

Q: How accurate are the support and resistance levels provided in the matrix?

The support and resistance levels provided in the matrix can have a small margin of error, usually around 5-10 points. However, if a level is holding, there is a likelihood that the market may move towards the next level.

Q: How can the matrix be used for trading Nifty and Back Nifty futures?

Traders can use the matrix to identify key support and resistance levels for Nifty and Back Nifty futures. If a level is breached, it can be used as a target for trades, and if a level holds, it may indicate a potential pullback or continuation.

Summary & Key Takeaways

• The video explains how the Nifty Matrix and Back Nifty Matrix are constructed using hourly averages, indicators, moving averages, and Fibonacci projections.

• The charts and values are based on the spot Nifty and can be used to track Nifty Futures.

• The video showcases a previously prepared table and compares it to the actual market movement for the day.