Sensex update

Jai.Shewaramani · #1 16th March 2006, 06:06 AM

Sexsen has made two doji's in 2 days. CMP 10,802. This can mean only two things
1) Sensex is making a support level for future retracements
2) A reversal sign (A retracement in order)

Assuming the 1st option is true, I dont think there's anything to worry about

Assuming if option 2 is true, then, we would need a confirmation today, 16th march. If sensex breaks the level of 10,740 downwards, then there are good chances that it will take a support at the 10,550-10,575 levels. The final support is between 10,200-10,300. Only a close below the final support levels will hurt the bull run.

Jai

Jai.Shewaramani · #2 16th March 2006, 09:00 AM

Quote:

Originally Posted by baron

thanks for the morning update, can you say what's the significance of the 2 doji's made (gravestone & long legged)

Hi Baron
Personally I feel thts its a reversal to go down to the trendline @ 10,550, which is also the 61% retracement. But we need confirmation for that, which is only possible if the level of 10,740 is broken today.
Just an hour to go for the market to open, don't be suprised if u see a neagation in sensex.
But anyways, let's keep our fingers crossed.

Jai

Jai.Shewaramani · #3 16th March 2006, 09:35 AM

Quote:

Originally Posted by baron

ok thanks, but we differ as I'm on short side so my finger wud be crossed for the negation, sorry mate

lol
then i think u'l be gettin lucky today (n i dont mean it in the wrong way

)

all da best
Jai

Traderji · #4 16th March 2006, 10:01 AM

Quote:

Originally Posted by baron

thanks for the morning update, can you say what's the significance of the 2 doji's made (gravestone & long legged)

Doji basically indicates indecision in the markets. In an uptrend it could indicate a pause (sideways movement) or a reversal.

Gravestone Doji form when the open, low and close are equal and the high creates a long upper shadow. The resulting candlestick looks like an upside down "T" with a long upper shadow and no lower shadow. Gravestone doji indicate that buyers dominated trading and drove prices higher during the session. However, by the end of the session, sellers resurfaced and pushed prices back to the opening level and the session low.

Long legged doji form when the open, high and close are equal and the low creates a long lower shadow. The resulting candlestick looks like a "T" with a long lower shadow and no upper shadow. Long legged fly doji indicate that sellers dominated trading and drove prices lower during the session. By the end of the session, buyers resurfaced and pushed prices back to the opening level and the session high.

Jai.Shewaramani · #5 16th March 2006, 10:15 AM

Quote:

Originally Posted by Jai

Sexsen has made two doji's in 2 days. CMP 10,802. This can mean only two things
1) Sensex is making a support level for future retracements
2) A reversal sign (A retracement in order)

Assuming the 1st option is true, I dont think there's anything to worry about

Assuming if option 2 is true, then, we would need a confirmation today, 16th march. If sensex breaks the level of 10,740 downwards, then there are good chances that it will take a support at the 10,550-10,575 levels. The final support is between 10,200-10,300. Only a close below the final support levels will hurt the bull run.

Jai

So far its good news for sensex, the level of 10,740 has not been broken.
Jai

kaka · #6 16th March 2006, 02:14 PM

looks like there is fight between the bulls and the bears for past two days

bulls trying to defend 10750
bears trying to protect 10900

Jai.Shewaramani · #7 16th March 2006, 03:41 PM

Quote:

Originally Posted by kaka

looks like there is fight between the bulls and the bears for past two days

bulls trying to defend 10750
bears trying to protect 10900

Right you are kaka. And so far bulls have been the better half in this game.

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