Calm before the storm

kuldeep49 · #11 28th August 2006, 09:10 AM

Asian Indices are in an indecisive mode today. Critical levels for nifty close today that will determine which way the wind is blowing are 3340, 3320, 3280 on the downside while on the upside they are 3430, 3460, 3500.

kuldeep49 · #12 29th August 2006, 06:45 PM

For the last 4 trading days, Nifty has shown low intraday volatility and a steady rise which seems to point to a target of 3480. This also the 75% retracement from the low of 14th June to the high of 11th May (both highly significant support & resistance levels). So Nifty seems to heading in that direction. Once at 3480~3500 band, there may be choppy times ahead.
Cheers & happy trading,
Kuldeep

kuldeep49 · #13 3rd September 2006, 10:50 PM

Chances are that the coming week will see Nifty meeting the 3480 crucial level. If it achieves this, then 3520 and onto the 87.5% retracement level, 3625, will be the next target. The trend remains on the up. Strict stop losses are definitely on the cards as we are approaching choppy waters.

kuldeep49 · #14 4th September 2006, 09:09 AM

The storm may be around the corner. Please trade using very strict stop losses today and in the coming days. Please read my post "Streetsmarts" for today about the effect of the Tarapore Committee on Capital Account Convertibility.

kuldeep49 · #15 4th September 2006, 11:23 PM

Friends,
The storm fizzled out ... thankfully. So, Nifty continues its march to retrace to May highs. It reached its first target of 3480 today and the trend continues. On Tuesday 5th the milestones are 3525, 3580, and a major resistance at 3625. Keep those stop losses tight, though, trend reversals can be sudden as the climb continues.
Happy trading,
Kuldeep

kuldeep49 · #16 6th September 2006, 09:55 AM

Nifty at a bearish hanging man as per candlestick chart. This signals that there are many more sellers around waiting to sell. If today opens or closes lower, then a bearish signal would be confirmed. Reversal could occur at 3485 or 3540 levels.

kuldeep49 · #17 6th September 2006, 10:33 PM

The third thing happened. A second doji in a row. 3485 still remains a reversal point as a lot of resistance is being met at this level. If it breaches this level, one can expect movement to 3525, 3540. In case a reversal takes place, then shorting opportunity exists if Nifty falls below 3460. So, we are at an inflection point where opportunities are available in both directions. But, a rule of the thumb in candlestick trading is to wait out till the doji makes up its mind.

kuldeep49 · #18 8th September 2006, 09:28 AM

Expect that today's open will see falling Nifty. May recover later on in the day, but if the fall continues we may see the fall going all the way to 3300. Stop losses (especially trailing ones to lock in your profit) without emotion definitely on the cards today.

ivanboesky · #19 8th September 2006, 09:37 AM

FIIs have sold around 1178 cr in the F&O market (index futures amd stock futures) yesterday. This is the highest F&O sell figure since 15th /16th May.

Agilent · #20 8th September 2006, 10:24 AM

Quote:

Originally Posted by ivanboesky

FIIs have sold around 1178 cr in the F&O market (index futures amd stock futures) yesterday. This is the highest F&O sell figure since 15th /16th May.

Ivan,
Presuming we are still in a multi year bull market (and not in a secondary correction during a bear market which might have commenced in May) ... I think alll that's happening is profit taking by savvy large investors/traders

Like its happened 4 times in the past yr ....see attachment

(Ask God ... he is the only ones who knows for sure)

AGILENT