Sunday, March 31, 2013

WEEK 1 st to 5 th April

The month of March ended below the Feb. monthly close..So 5675-5700 emerges as a zone to watch in the month of April..above it long and below it short with your stop loss in place as you do..The range for the last month was 386 points ..The range could contract this month..5600-5700-5800 is the emerging range with a quick flash of about 100-150 points either way on breach of this range..Markets are a tad oversold in the daily charts too and may give a bounce provided the global cues support it..Watch the range and trade accordingly..enjoy your trades ..cheers

Sunday, March 24, 2013

WEEK 25th mar to 29th mar

The coming week is a truncated holiday packed settlement week..Lets first consider what markets have done so far????we have been selling from the start of Feb till date making lower highs /lows..This is natural after 13 months of spectacular rise..What else , Huge no. of mid/ small caps are at 52 week lows or  this means stocks prices have crashed to dismal lows but indexes still around 5700 due to index stock adjustments..Markets generally build parallel images and for technical guys will like to point out that if they draw channels in weekly charts from previous lows..they will find that temporarily , this could be a support zone..we have a gap in 5550 zone so can drift lower due to settlement pressure,,Your select stocks are well corrected and can be partially entered to trade a bounce..5750-70 will be resistance after which 5830-50 will be another resistance..clearing these levels  the  markets can retrace to almost 6050 over 5920 zone..Can we reach there is questionable ???as MAJOR CORRECTIONS  do not  end  soon and with time correction we head much lower than these levels, but rallies in a bear markets are spectacular and confusing & should be traded....So keep aggressive trading and book your profits regularly to enjoy being in the stock markets..enjoy your trades..cheers

PS:  A VERY HAPPY HOLI TO VISITORS OF THIS BLOG.

Saturday, March 16, 2013

WEEK 18TH mar to 22th mar

Markets failing to cross 5990 broke the 5900 zone to retest the 5800 zone to register a V shaped bounce..Technical traders would be enjoying this roller coaster ride either way  for good gains as the market is giving huge movements..So what are we looking for next week..An event is there RBI policy so be  light going into it..6000-5900-5800 seems to be the range now..with 5900 emerging as a pivot ..trade accordingly.. long term averages are turning bullish in intra day charts with 5830-40 being a  break zone in close..If we remain in this zone and US/Europe holds we may head upwards to test or break the highs made recently..cheers

Monday, March 11, 2013

WEEK 11th mar to 15 th mar

Markets reacted from the oversold support levels as observed in the last weeks postings to squarely cross the resistance zone of 5850 to head towards the next zone of 6000-6020 zone..Strong resistance here..do wait for a decent dip to get in again 5850 now becomes a strong support below 5900-5920 zone..targets above 6020 could be 6080-6100 zone before a decesive breakout over last highs can take place..Remember 5800 is important zone for this month.break can take us all the way to 5600 or below...Trade accordingly cheers

Sunday, March 3, 2013

MARKET DIRECTION

This week we will look at what the markets are doing right now...To see the market direction we have to look at the weekly charts..Markets had 3 points of reference while going UP  i e 4767-5034-5555 ,while making the move from 4538-6120..We have finished 78% correction of the last wave i e 5555-6120..any further drop will put the markets in the grip of correction of 5034-6120..which could go as deep as 5280-5560.. A bounce is expected from 5650-80 zone towards 5820-5850  (SL for shorts should be above 5900) at least after which the next leg down can start..The long term  averages are far away from the price so it will take a few weeks for catching up and then a consolidation  phase for any reversals..till then trade the main direction which is down and the occasional bounces..Happy trading cheers..