Bulls, Bears & The Lion

[atulaw]

Nifty would either plunge down drastically or make a very thin upmove. Even if it does make that small white/green candle bar it will fall like a rock day after tomorrow.

According to our very own ppgoa1 (in chat room), FIIs would be in their selling spree because their calender year ends on DEC. In Jan onwards markets will bounce back.
Sounds logical to me.

 

[aditya14]

Nifty would either plunge down drastically or make a very thin upmove. Even if it does make that small white/green candle bar it will fall like a rock day after tomorrow.

According to our very own ppgoa1 (in chat room), FIIs would be in their selling spree because their calender year ends on DEC. In Jan onwards markets will bounce back.
Sounds logical to me.

Yeah but alas logical endings are not there in markets otherwise the market valuations are based on FY10 earnings which are not logical as they haven`t been earned as yet.

Iam expecting a blast upwards day after.

 

[gbiradar]

I don't see any reasons for sharp correction.... Unless RBI announces something on rate cut... On the other hand there isn't any good news also... so 5180 is going to be quite strong resistance... we might continue trading in the range...

 

[findvikas]

I don't see any reasons for sharp correction

Market makers are smart enough to disclose the news after they have already discounted on that. Before the bad news hit the roads they would have already done shorting and would be accumulating. Reason will come out and everyone will start shorting to realize that market move up drastically on very next day.
Its the Volume Spread which helps you understand the operator's action.

Usually you see weakness on an upside day & strength on a downward day. Today's correction was not a weak one, moreover it was not led by single stock or sector.. it was a market wide sell off.

 

[findvikas]

Just for Informational purposes.. and share what I am learning.

US Stocks closed marginally down but it was a day where bears were distributing all day long and the confirmation of that was done by OBV in hourly charts

Have a look at it...

The red candle is a perfect bearish "Dark cloud cover" pattern but not yet a sign of reversal. We need 1 more bar which should open near or below the current close.. and more importantly a close below the the current close.

Usually when that confirmation bar comes, it's almost the same size of the previous bar or bigger.

 

[findvikas]

Intraday there is some recovery expected... a rebound to give a new level for bears to short. Book your shorts around 4995-5000 and go long in Future with a SL @ 4990

Target 5035-5040 in NF.

 

[findvikas]

Placed an pending order to buy 5300CE @ 14.50 , Intraday Target : 18-19 , SL: 13

 

[findvikas]

Out of shorts (5000PE) @ 105 (Purchase Price: 100)
Order executed: 5300CE @ 14.75 (8 lots)

 

[findvikas]

Bears are fearful to short at this level.. they don't have enough strength to fight with bulls yet. They will need support from their friend "FIIs" to kill the bulls below 4950, but that action is left for later half.

 

[findvikas]

Market will stay in very short range unless broken on either side, upside there are so many bears sitting to short ruthlessly and bring the index down. Do not go long above 5010-5020 level in Spot as the risk/reward ratio is not very much favorable there.