TESTING STRENGTH

Markets despite the gap up , moved in a tight range to retest the bottoms ..the volatility was high .. The take away from todays trade is that yesterdays bottom was held and 5050-70 zone remains a strong resistance area..the range seems to be 4950-5050 for a breakout eitherway..will try to post some chart this weekend for path ahead..enjoy the weekend..cheers.

BOUNCE BACK

Yesterdays selling was a bit overdone and markets went in oversold zone. With help of global cues it opens up today to correct yesterdays excesses.5070-80 will be watch area for any move up..Failure to close above this zone , will not augur well for Bulls for resumption of upmove towards new highs of 2009...The OI range of options is still 4900-5100 range watch and trade the range till a decesive breakout takes place..cheers.

WHAT A JERK????

Well Well, the writing was on the wall in the last few days..and todays jerk really shook up the bulls /exuberance of over 5300 close in this settlement..The OI data which I have been mentioning here just about gave the warning of whats in store..as OI of 5100 calls went up yesterday( they were being written or sold) we moved straight towards our supports of 4950 area once we could not cross 5080 zone..( Remember the S/R of this week..) 4980 is a support zone below which is 4920..resistance over 5050 will be 5080 again...The lesson here is Always good to be in CASH at tops and buy in a day of MAYHEM.. like today then you are always safe & start with a edge over others , rather than chasing markets when they are at top for the elusive tops....enjoy the day cheers

SELLING MODE

Markets all over are in Sell mode today morning..Despite huge calls of targets of 5300 + , markets thought it wise to unwind as it found no cues to go HIGHER... Good supports lie at 4900 where there is huge PUTs OI and minor at 5000 zone..5100 calls have seen a big built up in OI last 2 days..indicating traders find this as resistance zone for the time being..( PLS. refer to the last few days posts on OI & market techs.)People in cash can find appropiate levels where markets stabalises to enter for a bounce back ..enjoy the day cheers.

PROFIT TAKING

I have been writing here almost everyday that markets are taking profits and distribution is going on..as no new cues are there for a upmove....Hope ppl. did take profits to highs now that we are soft and can again enter at lower levels..5080 below we are closing..this has to be retraced fast otherwise bigger correction can be there....Markets should take support in the zone of 5020-30, below which we have strong supports at 4980..for a move back..enjoy the day cheers.

SOFT ALL OVER

Markets are soft all over, not many cues helping to move forward..watch 5080 in close for any weakness..The selling & distribution is visible from the last few days as every rise is being sold into..4900 still holds a good support for this settlement as maximum OI of puts is there..5100-5300 Calls almost carrying same OI..Thus settlement could be in range of 4900-5200 as per stats of today..Will review this early next week..enjoy the day cheers.

TIRED MARKETS

Markets are not able to sustain the initial gains & are breaking down quite easily to supports..A few more days like this will encourage the Bears to break in the tired bulls..Profit taking and rotation is visible ..though interest still remains in small /mid cap stocks..Watch 5100 levels for any reversal signs as markets somehow seem to be holding here.seems the range could be 5020-5220 going ahead..enjoy the day cheers.

WEEK AHEAD

Markets globally are positive but do not look to be ready for any runaway rally, The area to watch next weekis 5076 for S/R...The range could be 4850-5300..Profits should be booked as we move up and trading positions liquidated at EOD by deft traders so as not to be caught on the wrong foot next day .Trade lighter & quicker with strict Sl..enjoy the day cheers

HAPPY SAMVAT 2066

I would like to wish all visitors to my blog a very happy prosperous coming year. Last one year has been amazing specially keeping in view where we were last Diwali..For coming days 4900-4920( Highest OI in put options) is the Big support zone for any sudden reversal ,close below which will trouble the BULLS....The tentative target of this market could be the ISLAND AREA ...of 5250-5300, which may again become a good resistance zone..ENJOY THE FESTIVAL & THE DAY

WISHING ALL A VERY HAPPYDEEPAWALI

Markets have stayed above 5100 for the 3rd day in a row..Seems Bears are unable to bring it below 5100 levels for the time being and we may be in to test higher levels in mahurat trading and coming days..Enough said /written /talked on markets ..lets close this SAMVAT on a positive note..once again wishing all a very happy prosperous DEEPAWALI..enjoy the festival with family & friends.

WHAT NEXT ?????

Let us today look at the technical side of the markets..Last few days NF OI gets added during the course of the trading day to be sold or profit booked at EOD..( meaning traders not ready to carry overnight longs)The 4900 levels has the highest strike price of OI in options in 4900 puts..( traders seem to have booked profits in 4700 mainly and also 4800 puts shorts in the last few days )..this means market unlikely to break 4900 levels in a hurry in this series. 5100-5300 calls have increased their OI , meaning that max. this rally can touch 5300 , Action is on at 5100 strike price now..so maybe below 5100 we retest 5000 & above 5100 go towards 5200..Trade this range for the time being before global cues/events/profits etc etc catch up with this rally of 7 months..hope this helps and clears doubts of many who have been enquiring from me of the trade ahead..enjoy the day cheers..

MARKET TECHNICALS

Markets does move on technicals got proved very well today..Despite great global cues and gap up, the markets corrected immedietly as we were tad overbought yesterday & with todays open , the opportunity window for shorts opened & then at the support swing..the longs could be initiated ..( hope people visiting here would have seen the morning advise)Sharp Intraday traders would have seen this in their charts and played accordingly..Those who could not see it should redo their homework on technicals..so what next...we dropped to and below 5095 and are over it at close..Still watch that zone for ur trades..bullish above and bearish below..enjoy the day cheers.

GLOBAL PARTY

Global markets specially US/Europe are partying right now..nothing much to add..see the levels given yesterday & try to follow it(5095 watch area)..MY ADVISE..dont chase the markets...But book profits where so ever they are.. enjoy the day cheers

HIGH CLOSE

Markets closed over the 52 week previous highs...Shorts would be worried at close today on the move going forward..Despite of high close, I would be cautious and will be alert on any sudden drop on the way going up.Global cues can push markets suddenly towards 5250-5300..watch 5095 for any signs of weakness in days ahead..5150-70 could be a reaction zone ..enjoy the day cheers.

TESTING HIGHS AGAIN

We should be testing old highs on open as SGX NIFTY suggests..so range of 4920-5110 gets completed again on the higher end..Caution again at heights..Best foot forward is wait and see where it holds supports to guess the next move of the markets..Cross & close over 5110 could take us all the way to 5300 or above..break below 5000 will augur weakness all the way 4900 or below.. the range is set and the move could be quick..trade with strict sl so as not to be on wrong side of the trade..enjoy the day cheers.