MARKET REFLECTIONS

Markets gapped up as per global cues, but due to lack of follow up buying kept slipping thru out the day to end at the speed resistance of 4335..the way forward is still 4430 above 4335 and 4200 below 4250. It being the settlement week lets see how the drama unfolds. cheers.

DAILY TECHNICALS

US markets and now ASIA too is in positive territory due to falling crude.... the SPEED LINES are giving us the resistances of 4335-4430-4500 on intra day basis..notice also that DTI has cut into positive on friday so the move is up. ( DTI is a slow moving indictaor and when it cuts or turns it does give movement in the direction for sometime), it also gave the positive divergence signal like RSI on 22nd viz a viz 19th. break of 4248 can take markets to 4200 and & lower..cheers & happy trading..

T A : R S I LESSON FOLLOW UP

classic example of what i had written abt. RSI divergence , it appeared yesterday..notice in the chart that when we were at 4316..RSI was way down below 10 and yesterday when we went below previous low..of 4316 to 4248..the RSI was around 20 and turning there by giving a signel from thursday that this selling will stop soon and it is giving POSITIVE DIVERGENCE. so cut your shorts today or next day and go long.. and the market just did that recovered all loss of the day and went on to close at high point of the day. one can also notice that RSI just touched the 50 mark( from low of 4316) and again turned down wards and the fall was very severe as below above 50 levels the trend sets in...cheers..

WEEKLY TECHNICALS 25 TH AUGUST.

NIFTY FUTURE: CLOSE- 4324

WEEKLY: HIGH-4458 LOW-4252

Stop/Reverse : 4345

R1 : 4437 R2 : 4551
S1 : 4231 S2: 4138

as markets are in oversold zone in intra day charts, an upward bias can be expected at the start og the week.the daily charts still has a downward bias so weekly s/r being 4345..trade according with strict stop losses. happy trading.

MARKET REFLECTION

nifty moved spot on in the range of 4248-4337...(ANDREW PITCHFORK WONDER) ,very close to my support and resistance level of 4250-4335.. it closed at the higher end of the intra range a good sign..stocks bought at opening gave good intra day profits whether index or mid/small caps..the bias defenitely was UP, good retracement from lower levels.lets ponder over the weekend and see where we are headed for the settlement week..enjoy ur weekend..cheers.

DAILY TECHNICALS

the soft cues turned into a blood bath after break of 4384 and broke all supports till it came near 50 sma.have posted the andrews pitchfork levels for intraday trading..nifty turns positive over 4335 and had 2 good supports down , one at around 4250 and final at 4200 & below...this is taken from the top ie 4650.DTI intra day is negative now. one can go long at these levels for a fast retracement of the oversold market. select stop pickings for delivery also can be done if we drift further down . cheers & happy trading

MARKET REFLECTIONS

hope the levels provided today morning were enjoyed for shorting and making money ..pls. also refer to the chart of 17th august of nifty extensions..it had the first target of 4269.87...WE DID 4271.3..nice run from 4650...below this 4173-4050 are the targets in case weakness persists globally.hope friends visiting are enjoying the levels and making money in tension free trade. cheers..
ps. will post a ANDREWS PITCHFORK target for intraday levels and trading tomorrow..dont forget to visit..

DAILY TECHNICALS

markets took resistance around 4420-30 area the whole of yesterday and could not move ahead & and will remain resistance for today too as crude is climbing higher & asian markets are soft , a pull back can be expected. area to watch is 4384-4369-4316-4300. markets maybe in range bound move as global clues have not given any further moveup triggers so one can wait for some direction break out to initiatetrade.trade in small quantity only for a day or so & watch the volumes during the day and direction.. cheers and happy trading

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