Observation Log: 6th May 2014
06 May 2014
Nifty opened with a 20 point gap up today. This was in line with the SGX Nifty which was trading at +30 odd points before the opening session in India.
Bulls started strong in line with our inverted hammer outlook but the bearish pressure was too high throughout the day and finally the Nifty closed just 16 points more than yesterday at 6715. Bulls lost by 4 points or so. A rather dull day but I sense a lot of restlessness amongst the participants. This is only my opinion which needs to be discounted.
Monthly
No change as per last log observation
Weekly
No change as per last log observation
Daily
So our inverted hammer did not get a strong confirmation as we would have liked. Neverthless the support at 6660-6680 looks sturdy.
The match looks equipoised between the warring parties. The chart has completely flattened out and we have entered a congestion zone most probably. I think this is the time for option traders and not futures!
Hourly
The chart is a downward extension after a gap up. We are in a congestion band as per last log.
30 Min & 15 Min
The intraday charts indicate a downward market. We had a SH in the downward extension and if its a flat opening tomorrow then we will continue downwards for a while in the day till sentiments change.
Overall
A hard battle between the bulls and bears is in progress. Someone will give way sooner or later but who will is the question. I am not able to answer this (which is natural). US & EU are all in red and this might have a cascading effect on the Asian opening early morning tomorrow.
06 May 2014
Nifty opened with a 20 point gap up today. This was in line with the SGX Nifty which was trading at +30 odd points before the opening session in India.
Bulls started strong in line with our inverted hammer outlook but the bearish pressure was too high throughout the day and finally the Nifty closed just 16 points more than yesterday at 6715. Bulls lost by 4 points or so. A rather dull day but I sense a lot of restlessness amongst the participants. This is only my opinion which needs to be discounted.
Monthly
No change as per last log observation
Weekly
No change as per last log observation
Daily
So our inverted hammer did not get a strong confirmation as we would have liked. Neverthless the support at 6660-6680 looks sturdy.
The match looks equipoised between the warring parties. The chart has completely flattened out and we have entered a congestion zone most probably. I think this is the time for option traders and not futures!
Hourly
The chart is a downward extension after a gap up. We are in a congestion band as per last log.
30 Min & 15 Min
The intraday charts indicate a downward market. We had a SH in the downward extension and if its a flat opening tomorrow then we will continue downwards for a while in the day till sentiments change.
Overall
A hard battle between the bulls and bears is in progress. Someone will give way sooner or later but who will is the question. I am not able to answer this (which is natural). US & EU are all in red and this might have a cascading effect on the Asian opening early morning tomorrow.