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 !