Morning Update at 0800hrs for Intraday Market Level

[pranayk]

morning update at 8 am 03 dec 09

perhaps wednesday was destined to be a flat day for most of the markets. Dow closed slightly red with 18 points. European markets too closed flat with uk ftse up by only .3%. Brazil too closed flat with only .3% up.asian markets have opened mixed & may remain mixed with some rising and some falling today with chinese & hong kong correcting.

For indian markets, there is every possibility of remaining within the range of wednesday with a +ve bias. Any pause or intraday correction should be fully used by medium to long term investors to quietly keep on accumulating badly beaten down stocks in sectors of metals, power, infra, pharma, biotech & now telecom for very good gains.

Well dow has closed in the red with 18 points only. Had it closed about 50 to 70 points in red then there was every possibility of a good contrarian upward break out move in asian & indian markets today. In any case one should be mentally prepared to see a good break out upwards in a day or two for new yearly highs by early next week. For thursday, intraday traders may trade long in case nifty spot crosses 5147 and trade short in case nifty spot trades below 5111 for quick gains.

 

[subodh9]

morning update at 8 am 03 dec 09

Any pause or intraday correction should be fully used by medium to long term investors to quietly keep on accumulating badly beaten down stocks in sectors of metals, power, infra, pharma, biotech & now telecom for very good gains.

Dear Pranayk,
Can you please post the name of stocks in above sector which is badly beaten or can you give the list of the stock ?

Thanking you in the anticipation,

Regards,
Subodh Apegaonkar

 

[pranayk]

CHART ANALYSIS

 

[pranayk]

markets for 04 dec 09

well, as expected, nifty touched the critical level of 5181, made a small hole near the wall, came down to muster enough strength to try again to break out through the hole perhaps early next week. Interestingly ,the cleaner index the sensex has not yet touched the october highs of 17493 which may perhaps be decisively breached in one go some times early next week. Traders and investors must realize that although technically both the indices are ripe for a break out move above the october highs, the operators will not allow it to happen so smoothly.

These operators will delay it as much as possible to take it up as per their liking. Be absolutely sure that the timing of the break out will be decided by the international operators & the break out will come when no one will expect it to come. These operators will generate a fear of a double head formation , bring down nifty to fearful levels, create a feeling amongst all that perhaps recent lows of 4808 or even 4540 will be retested. Highly manipulated dow will be suitably adjusted by these operators to bring down asian and other world markets. So traders who are entirely dependant on technical analysis must place the likely operators action above technical analysis and trade accordingly. However medium to long term investors need not worry at all and keep on quietly accumulating their favorite stocks to certainly see a new life time high by early next year.

For intraday trading on friday, the last trading day of the week, one must keep in mind the last weeks high and closing levels of 5138 & 4942.a move of nifty above 5138 may meet with heavy selling pressure to bring down nifty by end to close below the high of last week to thwart an outright bullish indication for next week. Secondly the closing high for october was 5142, so operators as they did today, also will certainly bring down nifty to close below the critical closing level of 5142.dow operators deceptive actions to manipulate dow on thursday night will play a major roll to influence asian markets on friday morning.

If one has a look at the intraday chart above, one can clearly notice a h&s formation with head at 5181 and neck line around 5111. In case the critical neck line around 5111 or more importantly 5000 is decisively breached , traders may remind themselves of last weeks shorting power to ruthlessly short nifty for good gains. But always remember operators deceptive action of false moves to trap traders, so must have a tight quit point of about 15 points if things turn against you. On the higher side a cross over of 5142 followed by 5172 can shoot past october highs of 5181 to eye for 5200+ level & should this happen, boldly short nifty above 5200 levels for quick gains. Be very sure that the markets are technically very strong for big up move, so intraday shorters should have tight quit points for the shorts

 

[chaitanyagoa]

Hey Prayank,

what is the time frame that you are plotting the charts on?

Thanks

 

[aditya14]

markets for 04 dec 09

well, as expected, nifty touched the critical level of 5181, made a small hole near the wall, came down to muster enough strength to try again to break out through the hole perhaps early next week. Interestingly ,the cleaner index the sensex has not yet touched the october highs of 17493 which may perhaps be decisively breached in one go some times early next week. Traders and investors must realize that although technically both the indices are ripe for a break out move above the october highs, the operators will not allow it to happen so smoothly.

These operators will delay it as much as possible to take it up as per their liking. Be absolutely sure that the timing of the break out will be decided by the international operators & the break out will come when no one will expect it to come. These operators will generate a fear of a double head formation , bring down nifty to fearful levels, create a feeling amongst all that perhaps recent lows of 4808 or even 4540 will be retested. Highly manipulated dow will be suitably adjusted by these operators to bring down asian and other world markets. So traders who are entirely dependant on technical analysis must place the likely operators action above technical analysis and trade accordingly. However medium to long term investors need not worry at all and keep on quietly accumulating their favorite stocks to certainly see a new life time high by early next year.

For intraday trading on friday, the last trading day of the week, one must keep in mind the last weeks high and closing levels of 5138 & 4942.a move of nifty above 5138 may meet with heavy selling pressure to bring down nifty by end to close below the high of last week to thwart an outright bullish indication for next week. Secondly the closing high for october was 5142, so operators as they did today, also will certainly bring down nifty to close below the critical closing level of 5142.dow operators deceptive actions to manipulate dow on thursday night will play a major roll to influence asian markets on friday morning.

If one has a look at the intraday chart above, one can clearly notice a h&s formation with head at 5181 and neck line around 5111. In case the critical neck line around 5111 or more importantly 5000 is decisively breached , traders may remind themselves of last weeks shorting power to ruthlessly short nifty for good gains. But always remember operators deceptive action of false moves to trap traders, so must have a tight quit point of about 15 points if things turn against you. On the higher side a cross over of 5142 followed by 5172 can shoot past october highs of 5181 to eye for 5200+ level & should this happen, boldly short nifty above 5200 levels for quick gains. Be very sure that the markets are technically very strong for big up move, so intraday shorters should have tight quit points for the shorts

One of those Operator moves resulted in a 40+ point red candle on 2min chart today.Looked fishy to me so i went long in BNF when it started going up a little.

 

[pranayk]

morning update at 8 am 04 dec 09

as mentioned above, dow operators manipulated dow after closure of european markets to negatively influence asian markets on friday morning. Dow fell by 86 points and the entire fall coming during the closing minutes. European markets generally closed flat but as usual uk ftse sensing dows dirty game closed .3% down. Brazil too closed .4% down. Asian markets as usual have opened in the red and may continue to remain in red in solidarity with dow operators.

For indian markets, one can expect an initial opening fall to around 5105 or 5100 or even to as low as 5090 spot levels that may see a solid bounce from these levels. However if 5090 level is decisively breached during trading then there is every possibility of a further fall towards 5075 levels that should see bulls coming back with full vigor to save nifty spot from falling further down till 5063 or even 5050 levels.

Although dow operators are likely to take dow further down on friday night to induce another bigger fall on monday morning, medium to long term investors may keep on adding badly beaten down stocks in metals, power, infra, banks, fmcg & capital goods for very good gains in near future. Option traders fond of carrying option for next week may buy 5200 call on decline of nifty below 5100 levels and as nifty rises towards or above 5150 levels, may buy a 5000 or 4900 put to carry both calls and put for next week in the ratio of at least 2 calls to 1 put.

Two level to watch out for fridays intraday trading are 5100 to 5090 on the lower side and 5140 on the higher side the decisive breach on any side of which may see a good move in the direction of breach

 

[subodh9]

Dear Pranayk,
Can you please post the name of stocks in above sector which is badly beaten or can you give the list of the stock ?

Thanking you in the anticipation,

Regards,
Subodh Apegaonkar

Dear Pranayk,

I am waiting !!!!!!!! :annoyed: :annoyed: :annoyed:

Regards,
Subodh Apegaonkar

 

[milind857]

Hey Prayank,

what is the time frame that you are plotting the charts on?

Thanks

Hey chaitanyagoa,

I think it is mention on the left hand side of the chart that is 15 min...

 

[pranayk]

CHART ANALYSIS