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 !
Showing posts with label oversold. Show all posts
Showing posts with label oversold. Show all posts
Friday, November 21, 2008
Thursday, November 20, 2008
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 !
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 !
Wednesday, November 19, 2008
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 !
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 !
Tuesday, November 18, 2008
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 !
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 !
Friday, October 10, 2008
10 Oct'08: Hell Cut Loose
On Wednesday nifty opened with a huge gap down of around 150 points and went further down to make a new year low of 3330. Nifty broke all the major and minor support levels with a comfortable margin during the onset of panic among the traders. From the day’s low it bounced back to get resisted around the psychological level of 3500 and same been taken out during the last hour of the trading to close at 3513. Almost 150 points recovery from the day’s low had left the traders with some kind of hope on the Wednesday evening.
In spite of taking coordinated move by the major global banks to cut their interest rates to improve the liquidity, global markets doesn’t seems to take to cue and shown some sign of recovery. The US market once again took a blood bath yesterday and closed very very weak making the lowest levels in the past 5 years. Asian market has not failed to take the cue from the US market and opened with a very huge loss of around 7-10%.
Anything can happen in the Indian market today on both the directions. I feel the opening will be very weak with the gap down in line with our peer Asian markets. Don’t be surprised if the nifty tests the Wednesday’s low in the initial hours and in very worst case may be it can break 3330 level also. As all the global markets are due for a technical bounce back and same is expected in any time. On the lower side nifty may find support near 3385, 3330 or 3255 levels. Similarly on the upper side resistance exists near 3588 or 3662 levels. During panic and emotion based trading technical support and resistance has very little importance.
Happy Trading !
In spite of taking coordinated move by the major global banks to cut their interest rates to improve the liquidity, global markets doesn’t seems to take to cue and shown some sign of recovery. The US market once again took a blood bath yesterday and closed very very weak making the lowest levels in the past 5 years. Asian market has not failed to take the cue from the US market and opened with a very huge loss of around 7-10%.
Anything can happen in the Indian market today on both the directions. I feel the opening will be very weak with the gap down in line with our peer Asian markets. Don’t be surprised if the nifty tests the Wednesday’s low in the initial hours and in very worst case may be it can break 3330 level also. As all the global markets are due for a technical bounce back and same is expected in any time. On the lower side nifty may find support near 3385, 3330 or 3255 levels. Similarly on the upper side resistance exists near 3588 or 3662 levels. During panic and emotion based trading technical support and resistance has very little importance.
Happy Trading !
Wednesday, October 8, 2008
08 Oct'08: Uncertainty
Yesterday nifty opened gap up, which was short lived to fall eventually. During the fall nifty took support very very close to our mentioned support of 3539 and made day’s low at 3537. The trend was very choppy going up and down. During the day nifty broke the important support level of 3555 and in no time recovered above this level to close flat above 3600 at 3606.6. forming a doji in the daily chart. Doji signifies uncertainity among the traders which is exactly happening as people are very much confused with respect to the direction of the market.
Once again the US market took a blood bath yesterday and closed very weak with S&P 500 breaking the psychological level of 1000. Following the weak US market, Asian market also opened and trading very weak. Nifty is expected to open weak. Gap down of 50–100 cannot be ruled out.
As both weekly and daily charts gives signal of oversold, bounce back can be expected any time, if not today it may come in couple of sessions. On the lower side nifty may find support near 3559, 3518 or 3430 levels. Similarly on the upper side resistance exists near 3646 or 3714 levels. For any significant change in trend direction, nifty has to close above 3750. Hope nifty does not break March 2007 low of 3555 and psychological level of 3500.
SUN OUTAGE: Between 24th Sep.’08 to 8th Oct’08 market will remain closed between 11 25 hrs to 12 10 hrs due to sun outage and market will close at 16 15 hrs instead of 15 30 hrs.
Happy Trading !
Once again the US market took a blood bath yesterday and closed very weak with S&P 500 breaking the psychological level of 1000. Following the weak US market, Asian market also opened and trading very weak. Nifty is expected to open weak. Gap down of 50–100 cannot be ruled out.
As both weekly and daily charts gives signal of oversold, bounce back can be expected any time, if not today it may come in couple of sessions. On the lower side nifty may find support near 3559, 3518 or 3430 levels. Similarly on the upper side resistance exists near 3646 or 3714 levels. For any significant change in trend direction, nifty has to close above 3750. Hope nifty does not break March 2007 low of 3555 and psychological level of 3500.
SUN OUTAGE: Between 24th Sep.’08 to 8th Oct’08 market will remain closed between 11 25 hrs to 12 10 hrs due to sun outage and market will close at 16 15 hrs instead of 15 30 hrs.
Happy Trading !
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