Nifty bottomed out on 31st March 2013

A potential buying setup suggested by divergence between the momentum indicators between the perceived wave A and C already exist. The overlapping wave on the hourlies along with the key reversal bar has suggested a short term bottom.

Accordingly, the idea is to initiate longs with a stop below 5600 on closing basis.

What do the other people on traderji feel ?

I am reasonably convinced. The best part is the small stop loss of 100 pts !! If the view is right the profits may be in excess of 500 points.

Smart_trade, using his TDST technique, also mentioned a buy setup. So far 5600 has provided a good support.

Retest of 5600 is required to know strength of Bears.

Outlook does not look bright as this morning there has news about Poor manufacturing data and poor number for auto sales.

Well,

Yes, I see a pattern also. closing above 5721 hourly spot nifty will confirm uptrend

johnny

With all due respect, I believe stock prices discount everything. Hence the data you are talking about has already been discounted.

Would like to quote Gerald Loeb here " What everybody else knows is not worth knowing" !!

I think the trendline break on the hourlies has already happened. We are already on our way to 6000!!

Keeping fingers crossed. Its good to feel nervous on a trade where all setups are positive (typically these trades work out). Trades on which I am very confident turn out to be the wrong ones !!:lol: I guess it is something to do with the sentiment on the street which subconciously effect you.

Retest of 5100 ?? this would mean the break of the recent low.

Then my hypothesis of ending diagonal with E wave throwover on the hourlies would be wrong. I feel that Nifty would not show any meaningful correction now.

A move above 5740 would be taken as a confirmation for my analysis. Accordingly I would want to add further longs if that happens.

April month is prone to dullness, unless some news breaks out... price may do timepass in this expiry...