Wednesday, December 31, 2008

Nifty holds above 2930, correcting with lower volumes.to trade 2900 - 2990 before a decisive move.

Nifty has commenced the correction for the upmove from 2813 to 3003 promptly today.
If 2880(50 DMA) & 2905 are held, further upsides are possible as the rises are on higher volumes and the falls are on lower volumes.
As the 25 DMA provided the critical support on Monday at 2813 which is a rising average, keep that 25DMA as a critical support(2867 for today)

If you work hard on the study of individual stocks, the chances of outperforming the Nifty is very high as Stock picking will continue to play while Nifty will be in a larger corrective phase for 9 to 12 months period.(Rotation/ Churning of portfolios by funds will offer very good spreads especially when the stocks are "Oversold".

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WISHING YOU ALL A VERY HAPPY & PROSPEROUS NEW YEAR.

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6 comments:

Tryin2Trade said...

Illango Hi,

Wishing you and Your Family a Very HAPPY NEW YEAR!!!!

Sharath said...

Ilango'ji Wish you and your family a happy new year....
Thanks for 2008 as i got to see your blog.

Nifty Trader said...

I wish 2009 gives all the stock market traders a good oppurtunity

markets from last 5-6 trading sessions are very ranged with low volumes and thats why my SL is getting triggered on both sides i am getting wipsaw , is it coz of low volumes sirji ???

Ilango said...

Hi..Manoj, Sharath & NiftyTrader,

Thank you and Wishing you a content & Successful New Year all through.

Regarding the SL for Nifty trading, I trade EW with Technicals and book out before a sell signal on reaching the targets with SL placed near the start of that particular move.

For day traders, SL will be different than the positional traders. It also depends on how much risk you are willing to take in a particular kind of mkt.

In the last few days, owing to holidays and the resultant low volumes, you just take small points of say 30 to 50 and trade levels and SL won't work much.

Best regards.

meet said...

Hello sir,
wishing you and your family a very Happy and prosperous New year.
Regards

salemaruvi said...

WISHING YOU HAPPY & PROFITABLE NEW YEAR !!!

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