Tuesday, November 11, 2008

Nifty's fall becomes severe below 2860 & to gain strength above 3050..

Today's Trade as per "SAR" & "ORB-15 mins":-
Op. range in the 1st 15 min was "3121 - 3091" and 3091 was breached at 10.20 AM initiating a Sell for the day though "SAR" was in sell mode from the start.

3050 being the channel bottom was breached subsequently(10.40 AM) and was challenged very briefly(11.10 AM).

3020 - 5 day ema was breached next(11.35 AM) and was challenged briefly upto 3032 and then the market kept falling faster thereafter.

Tomorrow's Trade:-
On the lowerside , the critical supports are at 2880-2860 & then 2775.

5 day ema at 2993.

If tomorrow closes below 2920 (5 day Low ema), stay short.

I have a negative bias for tomorrow.
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With the bearish engulfing candle, closing below 5 day ema, it is clearly turned down. One more day's action will complete the picture. If it is able to stay above 2860 and rally up & close above 3000, bulls will have a chance.
On the otherhand, if 2860 is broken and only weak rally materialises, it becomes "Sell on rises".
If 2775 is broken decisively, more severe falls likely.

So Tomorrow is very CRITICAL for decisive action ahead.
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