ROLLER COASTER.

Huge global weakness crashed our markets too despite of huge sops from RBI yesterday evening..and then when all looked lost came the great bullish reversal..and what a rally..it was threatening to break 10k sensex ,,,and we travelled back to 3329.....from 3099....3097 is a strong support for this market below which 2995 is what the target could be.Markets have been recovering to deceive again and again with every new bottom, so will have to cross fingers to see how the trade pans out in the next week or so ..3240 is a crucial support level below which 3200 is there, as global cues are guiding us , lets see how Europe/US pans out tonite....take care cheers.

RAMPAGING BEARS AGAIN

The speed lines are quite clear..I connected 4000 - 3198 and see the result, we were to be out of woods over 3648 , alas the bears out again and the bulls just running off.. support was around 3280 level and deeper down at 3050-3000. Is it testing the lows again , or real fears of recession/poor earnings/redemption pressures which is leading to sell offs on a daily basis...I feel in bear markets when nothing helps and there is desperation/despair...we may be near the bottoms..keep cheery picking partially some stocks which you would like to have and carry for 1-2 years..Do keep in mind the rallies in bear markets are fast furious and dont get trapped into buying the highs..trade carefully..cheers..

DOWN & OUT

The 2 days gains just tripped out in a slow grind down in the last 2 days...very typical of bear markets where markets RISE FEROCIOUSLY, and fall VERY SLOWLY.. We are near supports now and if global cues are flat to slight negative , we may expect a recovery here too in a day or so. Lets look into some technicals tonite and will post them tomorrow morning..Hope all who took profits home would be ready to plow their capital again in the market..cheers..

SOFT AGAIN

Profit taking took place yesterday and may continue today too as Asia /US is slightly negative ..best is to wait and watch for a day or so & see what technicals unfold to take a call..trade carefully..cheers.

ARTICLES FOR INVESTTIME

Dear friends, BIRLA SUNLIFE ( wealth managers) Reserch team has asked me to start a series of articles for their inhouse magazine, INVESTTIME on market technicals /indicators/chartpatterns etc etc , for the COMING months... The first in the series is published and available . Do go through the link given below
http://www.birlasunlife.com/distributiontsetIMS/new/Investime_Sept_08.pdf
PAGE 10.
Markets did gap up , gave good profits and the call for booking profits and taking them home must have helped....do remember last weeks mauling by bears was huge and wounds will take some time to heal..lets see how things unfold in the next day or so and where we take support..cheers

AMA/CHANDE VIDYA LINES

the line in green red is AMA/and the line in pink white is chande vidya..see the RSI has a long way to go up to overbought territory right now..notice when they falttened .the prices rallied towards it yesterday...so whe nit will slip price will travel to it..on the rt side is the ama/cv values.. also if u will look a few days back from where the selling is coming when they both turned down...cheers

BULLS BACK

HELLO BULLS, looks like some survived.the severe bear maulings.Weekend gloom doom vanishes with todays opening, most of the fall of last week will be reversed in 2 days..Had written that all this selling is overdone and the bulls will uncoil..as indicators are abt. to turn. Hope the speedlines/retracements levels helped..People who bought stocks last week or went long in FNO should post profits today..enjoy the ride..cheers.

OVERDONE OVERTURNED A BIT

Wow ......relief rally came despite huge glomminess thru the weekend..All and everyone were jumping over one another to give newer lower targets for this monday..well markets are markets, the footprint of the friday trade of higher lows..3198-3209-3258, held as I had written & also the uncoiling of the oversold positions was to take place , we rallied up doing higher highs throughout the day....Good thing is there was no huge selling in the last hour of trade. Technicals do help and its proved again today, only interpretation of signals is required..Hope people have benefitted from the technicals posted here.. So where to from here ..the speed lines will still remain valid..lets see how the drama unfolds in US markets today. Enjoy the good day today...cheers.

CONSOLIDATION WEEK

The speedlines/retracement levels are self explanatory, the damage is very severe and will take its own time to recover. Keep a check on higher lows/highs for direction of the market..All indicators are oversold and can turn anytime, specially this time the faster indicators in daily/weekly/monthly may turn up together which can give a good relief rally, which if held can become a bigger rally..one can pick shares of significance for quick profits in such rally..with sincere wishes for a nice weekly close this week.. ...cheers..

WHATS UP FOR NEXT WEEK

SECULAR damage took place all over the world in stock markets and the financial world. Huge wealth destruction took place in all asset classes except gold. Volatile trading in the US markets and final closing at marginally lower( THANK HEAVENS) eased the fears a bit.Every one is talking abt. decesions to be taken in G7 summit for sanity to return to world financial order.
Back home we did make higher lows but did not make higher highs..we managed to stop at crucial levels on friday..there will be strenght only above the level of 3400 , supports/ resistance at app 3100-3600.. Selling looks very overdone and all indicators can turn anytime..some good stocks which are available today at bargain prices due to capitulation can surely be added for your portfolio for small-midterm ,or a trading bounce in a relief rally. Watch the opening of Asia on monday, I feel next week trading again will be quite volatile till sanity returns..trade with care ..cheers..

CHOPPY TRADE

The markets were flying all around the whole day after the huge gap down and near circuit levels in the morning and despite all help from the government , it kept slipping again and again ..the bottom as of today is 3198-3209-3258 at day end..and we made lower tops at 3396-3364..Europe /US futures is in deep red..Depressing day for all and i think hands off would have helped today to gauge and see how markets are behaving..lets see how next week unfolds..till then rekax and dont think of the markets this weekend..good sign i noticed was that many stocks started moving up after the carnage and are up 20-25% from their bottoms..cheers..

HOW TO TRADE

Markets have to make higher lows /highs before some semblence comes..if 3199 the todays base is breached , then we wait for another low or market should make higher low (3239 it is that right now)before we can even think of this carnage taking some breath.. todays high of 3396 will have to be crossed too.( basically a few higher lows/highs will be a clue for stopping of this carnage).so look at this range intra day for your cues , its already been a very chppy market..
take care.

INSANE SELLING

Global markets are plunging and there is no respite , all and any supports just plunging , I had posted charts yesterday for supports resistances.Best stratergy is to stay away as every new day comes with worser news.Semblence has to come and it cannot carry on like this.HUGE wealths have been wiped out in the last few days and will take time to recover this, only if this madness stops first ....Take care ...cheers.

PS. Take a break.

MONTHLY SUPPORTS RESISTANCES.

The Monthly Nifty Charts show the downward sloping channel..the touch down was app.3290-3300 , markets moved fast furiuos yesterday towards it , but stopped short at 3329.45..,turned and covered ground fast despite continuos selling & kept recovering till the close.The speed lines show the 3rd final supports around 3100 area..(i have 3140-3150 as a value of nifty for final support )below which could be a free fall..last we tested this support line was MAY'04...If this bottom holds , we can expect a bounce to 4100 area as per speed lines and any turn of trend can take us to top of the channel which today is .. 4300 area ..

The Monthly Stochastics & RSI are fast nearing the oversold territory( from January'08 tops) but still pointing downwards due to relentless selling of last 1 week. As and when they turn , the market can look upwards..for a while , will the relief rally come , surely why not as everything is grossly overdone..MILLION DOLLAR QUESTION IS WHEN..??????The best thing we can do here is start to look for signs like, higher bottoms /higher tops...& see that the bottoms made are not breached .Do keep in mind that the last one weeks fall put in a huge STRUCTURAL DAMAGE TO ALL STOCK/FINANCIAL MARKETS OF THE WORLD. And recovery will be a bit slow and over time..Hope this helps all friends visiting here.. cheers..

PS: Monthly charts are used for finding future footprints from the past for longterm.

HAPPY DUSSEHRA DAY

I would like to wish all friends visiting my blog on this auspicious day, with a sincere hope that the coming days /weeks brings a end to this senseless selling/carnage and world financial order stabalises too. I would like to thank all the visitors to the blog , specially the people who have been sending me mails/yahoo msgs , for their encouragement and kind words. Since I started this blog, I have been trying to build this place as a learning site for newbies and oldbies for technicals , using my knowledge and expertise of reading and interpreting charts.Please appreciate that my complete time is paid by my clients & my expertise / trading skills is primarily for them so technicals is what you get here , will try to do more for intraday also if time permits..I feel it is better for people to learn technicals themselves and trade according to their risk appetite..not long back a group of people got together to learn technicals from me..almost all take their own calls except one or two who still chase experts all the time ..and wait for calls..WHAT A WASTE..do keep sending me ur suggestions for what more in techs . can be done.& .Enjoy the day...cheers.