15 Dec'08: No Update

There will be no update till we resume.

 

Happy Trading !

 

12 Dec'08: Over Bought

Yesterday nifty opened with a mild positive note. During the first half of the session nifty was trading in the negative terrain and very often tried to move into the positive side and failed. Also on the lower side nifty defended the 2900 level by sharply bouncing back. In the second half of the session nifty saw the selling pressure and sharply dived till the day’s low of 2861. The last hour of trading was marked with surprise like that of last session where nifty saw a very sharp pull back and closed almost flat. The last hour pull back was contributed by major heavy weights like Reliance Industries, etc. IT sector was hammered during the session. The Nifty high, low & close are as follows:

H: 2945          L: 2861           C: 2920

 

US market closed in negative with their indices loosing around 2-4% in the last hour of trading. Asian markets also have opened and trading in negative region. Nifty is expected to open with a negative bias. Inflation has been reported 8% against the previous value of 8.4%.

 

On the upper side nifty may find resistance near 2956 or 2993 levels. Similarly on the lower side support exists near 2873 or 2825 levels. If nifty can manage to break and stay above the first resistance level it may add more momentum to the nifty towards 3000 levels. Since nifty has entered the overbought level, correction may be expected in any time.

 

Happy Trading !

 

11 Dec'08: Correction Pending

Yesterday nifty opened in the positive region as expected. During the initial hour nifty was testing the first resistance mentioned and same been broken eventually. Till the first half of the session nifty was trying to break past the second resistance level of 2901 but initially failed and corrected sharply till our first resistance level. In the last hour of trading there comes the surprise factor which resulted in the nifty taking support near our first resistance level and broke the second resistance level with a comfortable margin and closed at the day’s high. The Nifty high, low & close are as follows:

H: 2940         L: 2816           C: 2928

 

US market closed in negative with their indices around 1% down. Asian markets have opened and trading in negative region. Nifty is expected to open flat to negative bias. Even if nifty opens with a gap up, the gain may not be sustained due to profit booking that may emerge.

 

On the upper side nifty may find resistance near 2968 or 3019 levels. Similarly on the lower side support exists near 2849 or 2771 levels. If nifty can manage to break and stay above the first resistance which is the weekly resistance level it may add more momentum to the nifty. Profit booking may emerge at higher levels. Since nifty has entered the overbought level, correction may be expected in any time.

 

Happy Trading !

 

10 Dec'08: Stimulation Rally

On Monday nifty opened very strongly above 2800 backed by the rate cut by RBI and better inflation numbers. During the day nifty defended 2800 level but in the last hour of trade it fell very steeply below 2800 level and also closed below it. The Nifty high, low & close are as follows:

H: 2861          L: 2762           C: 2784

 

US market tumbled after two days rally to closed in negative with their indices around 2-3% down. Asian markets have opened and trading in positive region. Nifty is expected to open flat to mild positive. Intraday volatility and surprises may be anticipated for the day. The way market closed on Monday shows some weakness in the charts.

 

On the upper side nifty may find resistance near 2842 or 2901 levels. Similarly on the lower side support exists near 2744 or 2704 levels. If nifty can manage to break and stay above the first resistance which is very critical level it may add more momentum to the nifty. Profit booking may emerge at higher levels.

 

Happy Trading !

 

09 Dec'08: Holiday

Today market is closed for Bakrid.

08 Dec'08: No Update

There will be no update for today.

 

Happy Trading !

 

05 Dec'08: Speculation Rally

As expected yesterday nifty opened with a mild positive note. During the first half of the day on the way up nifty got resisted around the mentioned resistance level of 2735 but during the second off nifty gave that surprise factor by breaking all the resistance and closed at the day’s high. Nifty is rallying on expectation of economic package or rate cut from RBI this weekend. It is to be noted that the inflation has come down to 8.40% from 8.84%. The Nifty high, low & close are as follows:

H: 2794          L: 2647           C: 2788

 

US market closed in negative with their indices around 2-3% down in the last hour of trading. Asian markets have opened and trading flat to mild positive. Nifty is expected to open flat to mild positive. Intraday volatility and surprises may be anticipated for the day.

 

On the upper side nifty may find resistance near 2839 or 2889 levels. Similarly on the lower side support exists near 2692 or 2597 levels. Today would be the testing day for nifty. If nifty can manage to break and stay above the first resistance which is very critical level it may add more momentum to the nifty. Profit booking may emerge at higher levels.

 

Happy Trading !

04 Dec'08: Confused N Uncertain

As expected yesterday nifty opened with a mild positive note and made the day’s high at the opening itself where it encountered profit booking. During the day the trend was very volatile and choppy around the previous day’s close level.  The range of nifty was well within the mentioned support and resistance levels. It is interesting to note that the nifty has formed a doji in the daily charts which represents a level of confusion and uncertainty among the traders. The Nifty high, low & close are as follows:

H: 2693          L: 2612           C: 2656

 

US market closed in positive with their indices around 2-3% up in spite of discouraging economic data. Asian markets also have opened and trading in mild positive region. Nifty is expected to open flat to mild move in either of the directions. Intraday surprises may be anticipated for the day.

 

On the upper side nifty may find resistance near 2696 or 2735 levels. Similarly on the lower side support exists near 2614 or 2572 levels. The genuinity of the US market up move will be tested in a day or two. Also as the traders are uncertain on the direction of the market, it is expected for the nifty to decide on the direction in a session or two.

 

Happy Trading !

03 Dec'08: Surprise

As we had indicated yesterday nifty opened negative with a gap down of about 100 points to take out our first support level at the opening itself.  As we know that when the nifty moves below a critical support level then the same level becomes resistance for it if it is trying to move up. In the same lines during the intraday nifty bounced back and tested our mentioned level of 2624 several times during the first half of the day and could not succeed. But in the second half of the session the surprise factor popped in which broke the mentioned level and taken nifty up to cover the gap created in the opening. Nifty high, low & close are as follows:

H: 2673          L: 2571           C: 2658

 

US market closed in positive with their indices around 3-4% up after a big fall on Monday.  Asian markets also have opened and trading in positive region. Nifty is expected to open flat to mild positive.

 On the upper side nifty may find resistance near 2707 or 2755 levels. Similarly on the lower side support exists near 2595 or 2532 levels. Profit booking may emerge at higher levels.

 

Happy Trading !

02 Dec'08: Nose Dive

Yesterday nifty opened positive and in the first half of the session it had tested the critical 50% retracement level of 2832 exactly beyond which it could not move. Nifty did tried to break that level couple of times and failed badly to fall in a nose dive fashion in the second half of the session where there was no turning back. From the day’s high nifty fell almost 5-6% and closed near the day’s low which has brought weakness in the daily charts and can trigger further downward movement. Compared to the Asian peers Europe market sold off heavily yesterday where their indices drop to around 5-6%.

There was a one more massive sell off in the US market which resulted in their indices loosing around 7-9% in a single session. Asian markets also have opened and trading weakly. In continuation of yesterday Nifty is expected to open weak and most possibly with a gap down.

On the upper side nifty may find resistance near 2755 or 2839 levels. Similarly on the lower side support exists near 2624 or 2540 levels. Don’t be surprised if the first support level is taken out in the opening itself. Intraday surprises may be anticipated for the day.

Happy Trading !

01 Dec'08: No Update

There will be no update for today.

Happy Trading !

27 Nov'08: Expiry Day

As we had expected nifty opened mild positive with a small gap up yesterday. Hope you people experienced yet another volatile and surprise move in nifty. In the first half of the session nifty was trading sideways with ups and downs and in the second half it has not failed to give surprise. Yesterday the surprise was on the positive side unlike Tuesday where the surprise was on the downside. At last nifty closed close to the day’s high and very close to our mentioned resistance level of 2748.

With US market closed on Thursday and Friday, it closed strongly on Wednesday with its indices are almost 3-5% up. Asian markets also have opened and trading positive. Nifty is expected to open flat to mild positive. As today is the expiry day intraday volatility and surprises may be anticipated for the day.

On the upper side nifty may find resistance near 2795 or 2839 levels. Similarly on the lower side support exists near 2641 or 2560 levels. As nifty has closed very close to the crucial resistance level yesterday we have to see whether it could sustain above it. With US market closed for the next two days we have to see how nifty pan out once expiry is over today.

Happy Trading !

26 Nov'08: Expiry Drama

As we had expected nifty opened strongly with a gap up yesterday. The day’s high created at the opening became a formidable resistance for nifty. Nifty tested the day’s high resistance once and not succeeding to break it, the nifty fell in a unidirectional fashion to close at the day’s low. As we had anticipated there were intraday volatility and surprises which are part of expiry week drama.

US market closed almost mixedly flat. Asian markets also have opened and trading mixed. Nifty is expected to open flat to mild positive. Intraday volatility and surprises may be anticipated for the day as this being the expiry week.

On the upper side nifty may find resistance near 2748 or 2841 levels. Similarly on the lower side support exists near 2599 or 2544 levels. It is to be noted that as tomorrow being the expiry day nifty will be entirely under the control of operators who can move and take nifty anywhere they want in the charts.

Happy Trading !

25 Nov'08: More Pull Back

Yesterday nifty opened weak neglecting to take the cue from the US market. The intraday movements are market with volatile sharp ups and downs which are not abnormal during the expiry weeks. Every rise close to our mentioned resistance level got liquidated by selling pressure. Overall it was a choppy narrow band volatile session.

Once again US market closed strongly with their indices around 5-7% up on the news about bailout of Citigroup and following this Asian markets also have opened and trading strongly in positive region. Nifty is also expected to open positive positively with a gap up. Intraday volatility may be anticipated for the day as this being the expiry week.

On the upper side nifty may find resistance near 2754 or 2800 levels. Similarly on the lower side support exists near 2648 or 2588 levels. The ongoing pull back may be expected to continue at least for a day or two. It is to be noted that any strong pull back may find resistance near 2832- 2852 levels.

Happy Trading !

24 Nov'08: Finally It Happened

On Friday nifty finally gave a much insisted surprise pull back which was pending for the last 3-4 sessions. Nifty opened almost flat and then increased up to 2660 levels where it faced the selling pressure which has bought nifty to the previous day’s closing level. Near the previous day’s closing level nifty bounced very strongly and there was no looking back which eventually took nifty to close at the day’s high of 2718. The strong pull back may be purely attributed to short covering in the futures.

US market on Friday closed strongly with their indices around 5-7% up in the last hour rally. Surprisingly today Asian markets also have opened and trading weak in negative region. Nifty is expected to open flat to mild positive. Intraday volatility may be anticipated for the day.

On the upper side nifty may find resistance near 2761 or 2829 levels. Similarly on the lower side support exists near 2583 or 2472 levels. The ongoing pull back may be expected to continue at least for a day or two. It is to be noted that the weekly resistance for nifty remains at 2852 levels.

Happy Trading !

21 Nov'08: Massive Sell-off

Yesterday nifty opened weak by a huge gap down of around 100 points. During the day nifty defended the 2500 mark by testing that level couple of times and pulled back after testing and that is a positive sign at least for yesterday. There was intraday volatility within a narrow gap and ultimately nifty closed near the day’s high without filling the gap created in the opening.

There was once again a massive sell off in the US market which has resulted in the loss of around 5-7% in their indices. Asian markets also have opened and trading weak in negative region. Expect nifty also to open weak. Intraday surprises can be anticipated for the day.

On the upper side nifty may find resistance near 2589 or 2626 levels. Similarly on the lower side support exists near 2509 or 2466 levels. It is likely that nifty may take support near 2486 level which is a critical Fibonacci support level and breaching of which can easily take nifty towards the October low. As we are repeatedly indicating that the indices have entered oversold region, nifty may give a surprise pull back anytime and close positive at least for a day or two before it can fall back to lower levels

Happy Trading !

20 Nov'08: At Critical Support Level

Nifty opened positive by taking cues from the US market. During the day nifty formed double top at the day’s high of 2772 which attracted the long position holders to liquidate their positions and also invited fresh shorts which had eventually brought the nifty towards the day’s low without looking back. Nifty closed at 2635 which is closer to our mentioned critical support level of 2642.

There was a massive sell off in the US market which has resulted in the loss of around 5-7% in their indices. Asian markets also have opened and trading weak in negative region. Expect nifty also to open weak, possibly with a mild gap down. Intraday surprises can be anticipated for the day.

On the upper side nifty may find resistance near 2675 or 2732 levels. Similarly on the lower side support exists near 2578 or 2521 levels. In worst case scenario nifty should take support near 2486 level which is a critical Fibonacci support level and breaching of which can easily take nifty towards the October low. As we are repeatedly indicating that the indices have entered oversold region, nifty may give a surprise pull back anytime.

Happy Trading !

19 Nov'08: Oversold

Nifty opened weak as we had expected with a big gap down. As we had indicated nifty traded very volatile during the day with lot of choppiness in the intraday trend. After lot of ups and downs during the day nifty closed close to the day’s low.

US market closed positive after the last hour pull back with their indices around 1-2% up. But Asian markets have opened and trading in negative region. By considering the way nifty closed yesterday we can expect nifty to open flat to mild negative. But by considering the fact that nifty closed negative consecutively for the last 5 trading session nifty opening and closing in the positive region cannot be ruled out also.

On the upper side nifty may find resistance near 2748 or 2813 levels. Similarly on the lower side support exists near 2641 or 2599 levels. As we had indicated from the previous notes itself that the indices have entered oversold region, nifty may give a surprise pull back anytime.

Happy Trading !

18 Nov'08: Pull Back

Nifty opened mild positive as we had expected and fell into the negative region in no time. Nifty breached the important Fibonacci support level with ease and made the day’s low very close to our mentioned support level of 2683 from where it had bounced very sharply with a great momentum which took the nifty into the positive region. At the end of the day nifty closed with mild negative.

Once again US market closed very weak with their indices around 2-3% down in fear or recession worries. Asian markets have opened and trading weak. Nifty is expected to open flat to mild negative. Intraday volatility can be expected for the day.

On the upper side nifty may find resistance near 2859 or 2918 levels. Similarly on the lower side support exists near 2717 or 2635 levels. Today it will be decided whether nifty will continue its pull back trend which started in the second half of yesterday’s session or move downwards to test our second support level. With yesterday’s move nifty has entered the oversold region and a pull back may come in anytime.

Happy Trading !

17 Nov'08: Will 50% Retracement Holds?

As we expected on Friday nifty opened strong with a gap up of about 90 points closer to the mentioned first resistance level. But nifty could not sustain at that high level and fell to fill the initial gap created. For the rest of the day nifty traded sideways in a choppy manner and closed below the previous week’s low.

US market closed very weak with their indices around 3-5% down. Asian markets have opened and trading mixed. Nifty is expected to open flat to mild positive.

On the upper side nifty may find resistance near 2907 or 3003 levels. Similarly on the lower side support exists near 2747 or 2683 levels. A mild pull back can be expected near the first support level with coincides with Fibonacci 50% retracement.

Happy Trading !