DAILY TECHNICALS

the markets showed furious recovery from the bottom yesterday (making a hammer) on daily chart. the speed lines in the above intraday chart shows the range the nifty will move in the coming days..4420-30 is a resistance zone , cross of which takes the market goes to 4475-80 and then 4539 area strong support lies at yesterdays low or 4290 . the market was very oversold ( 5 straight days of selling) as shown by the RSI , its turned yesterday for upward journey ,which gets confirmed today with break of 20 level(do look at( RSI) TA below. bias looks upwards for the time being.. cheers & happy trading

T A : RELATIVE STRENGHT OF INDEX (R S I)

one of the great oscillators available for trading markets.some tips to use it:

(PLEASE REMBER THE BEST INDICATOR IS UR MIND,CONTROL THAT )

1. I have found that using 20-80 parameter as oversold/overbought and 50 as the average range works well from INTRA TO MONTHLY CHARTS.
2. please remember that cross of 20 or 80 does not mean that the market can be bought or shorted , but just that it moves now into the respective zones where care should be taken of the running trade.
3. the reverse trade only taken when the rsi crosses 80 downwards/or rises from 20 upwards.
4. crossover of rsi/average line closely monitered and wait for cross of 20/80 levels for trade.
5. when RSI is losing strenght despite of the price going higher /lower it shows that negative/positive divergence has started and the present positions should be liquidated & contrarian direction can be initiated when other signels also confirm.
6. cross of RSI over / below 50 line means that the trend is picking strenght , more positions shoould be added at this level as the direction has been set.
7. it can remain overbought /oversold for long in a heavy trending market so very low/high rsi levels does not signel a contranian trade.
8. its a slow indicator and best parameter is 14-1(60 mins or above), for intra day i use 5-3 for volatile markets in 10 mins time frame.

DAILY TECHNICALS

NIFTY remained trading around the 4400 zone throughout the day , with a negetive bias. the global cues today being negative the drift down to 4338 or 4300 which will lend the market some good support for a quick bounce back.60 min charts already are over sold and any GAP DOWN today should be utilised for opening long positions for a bounce back. look at weekly techs. and trade ..happy trading & cheers

DAILY TECHNICALS for 18th

nifty extension targets here are 4270 - 4173 - 4050. the AMA(ADAPTIVE MOVING AVERAGE)may lend nifty support in the zone of 4400 from where a bounce back to 4539-4630 will still be the swing targets of the rally back. the DTI (DIRECTIONAL TREND INDEX)as you will see still has a positive bias, DTI had signelled a trend reversal at the bottom and now when the AMA(turns red) & DTI cross over downwards , all longs should be exited from as reversal of the upmove of last 5 weeks will start ...buy in dips till the trend is up ,,,cheers and happy trading.

MONTHLY GOLD CHARTS

gold chart for planning a buy. IT IS VERY NEAR THE STRONG SWING SUPPORT 10,800/-..as it was a major swing top of past, hope it stabilises here. ..any break here and a few closes below this will take gold sub 10 K levels..cheers and happy buying

WEEKLY TECHNICALS 18TH AUGUST

HAPPY INDEPENDENCE DAY TO ALL FRIENDS.

NF RANGE WEEK : HI- 4654 LO- 4425

WEEKLY CLOSE4437

S/R NEXT WEEK :4505

R1- 4585 R2-4793

S1- 4357 S2 4277

though the daily technicals have a downward break out, some more steam is left in the weekly technicals. buy on dips for a quick profit is advocated for this week.
HAPPY TRADING

DAILY TECHNICALS

the speed line drawn suggest that a temporary top at 4630 is in place which also is becoming a big resistance.the range of the support lines are 4438-4278-4100. trading stratergy, can be buy in dips at any good support or sell on rise with 4630 NS close as stop loss. the weekly techs, extension can be kept . the DIRECTION TREND INDEX (DTI) is still showing a positive bias upwards so this could be a correction of the ongoing UP move. happy trading cheers

T A : FAKE OUT

yesterday and today are very classy examples of typical fake out by markets.. smart market participants who generally are big money like INSTITUTIONS/HNIs , etc normally tend to take markets higher than their tops or lower than their bottoms and then comes the sudden reversal which takes the markets quite far from where it was supposedly going thus causing pain and loss to smaller /retail participants.this normally will happen at the end of a trend which will confuse all those who never participated in the major move and now are keen to get in..do study this move of yesterday/today.. u will find so many similarities. from the past... LESSON IS: DONT ENTER AT THE END OF THE MOVE. cheers

DAILY TECHNICALS

we did not cross the NF 4659-64 , the level of resistance we said..and a sharp correction came..as the US /ASIAN markets are weak we can head now below 4525 towards the swing target 4464 , break of which can take us quickly 4368-4300 range..(NF has support at 4350-4210 range this month). the strong swing resistance of NS 4679 needs to be crossed deceisively to continue the UP momentum. cheers and happy trading.

DAILY TECHNICALS

nifty future should see a good resistance today in the range of 4659-64.difficult to cross this .. this should signal a slow down of the UP momentum(oil below $114 also helped this upmove again ) .nifty spot is heading towards the swing target of 4679.lets see whether we reach there.happy trading

NIFTY EXTENSION TARGETS

seems we are now inching towards a top ..nifty after a gap up(squeezed the shorts again) moved the whole day in a range which is around our area of 4605..till it broke out in late trade...will not recommend any fresh buying at this level rather better to keep posting profits and shifting to cash..or buy in dips only..break over 4725-50 will gallop the markets up...weekly N F targets/supports still remain same ,though this is a truncated week of trading. cheers

NIFTY FUTURE WEEKLY TECHNICALS.11th to 14 th.

nifty after a nice long ride from 3790 seems to be peeking off somewhere soon..so lets see what we can expect in the coming week.

CLOSE: 4547.

STRICT STOP & REVERSE : 4513

RESISTANCE :4664-4780

SUPPORT :4396-4245.

THE RANGE CAN BE 4690 TO 4280

best of trading

welcome all friends.

i would like to extend a warm welcome to all friends to this blog spot which i am starting. i will try to make this journey through market technicals fruitful and interesting for all vistitors of this blog by the knowledge of technicals that i picked up over the last few years. thanks and welcome again..

rajan bhatia
new delhi