Thursday, October 22, 2009

Nifty Premarket View..

Which ever way you look at it, there are overwhelming evidences to suggest a medium term top is in with TA showing -ve divergences in all time frames, EW suggesting in different count possibilities of a top and similar sentiments and internals in most world markets too.

So the prudent thing to do would be to "Close all longs", "Exit Cash investments"(May be in a phased manner as the same could be bought into at lower levels...Booking profits won't hurt you and we are not in a runaway bull market).

Momentum is like a huge rock pushed down a mountain top..As it comes rolling down, the speed increases. Market momentum too is similar..At 2539 it was gathering the momentum and in the last few weeks, it has struggled to inch higher. Now the reversal will gather momentum in the days to come. Try & play the short sides with periodic profit booking..

For today: Watch the S1 & S2 @ 5038 & 5012 for intra supports.
Besides these, Channel supports are 5030(Day) & 4985(Week).


18 comments:

Kapil Chopra said...

Dear Ilango,

Please advise on this position, have a medium term view, long 1 nifty at 5099 and sold 5100 call for October to hedge at 78, also sold 1 5200 call today morning at 17, what should be the SL for the future where I exit the future and let teh short calls continue ?

Cheers

Kapil

Ilango said...

Hi..Kapil,

Exit long on this intra day rally around 5075-5085..

Hold your "sold calls"- 5100 till 10Rs or lower-close it.
5200 Call- Forget it - 17 Rs will be yours..

Always "Sell a FAT Call"(like 5000 call) not a lean one like 5200. You are supposed to pocket big premium..besides your margin money is same for all the series.5000 Call would have given you big profits..

Hence forth, once downtrend is confirmed by a break below 4935, wait for some rallies and keep selling "CALLS" as that is the safest way requiring minimum monitoring..

Ilango said...

Hi..Kapil,

I am not comfortable with any longs at this time. So try to exit your longs.

Shift to "SELL-5000 Call" from the 5200..

Kiran said...

BANK NIFTY SHOWS SOME STRENTH.BUY @9485 WHER TO EXIT TO DAY......

Ilango said...

Hi..Kiran,

If the oversold markets continue to correct upwards, you might get around 9400+. Need to see it clear 9350 first..

bizagra said...

Hi Ilango sir, is ik ok to buy 4900 pe at present rates? with sl of 5120 NS? any chances of 4900 before expiry??

Ilango said...

Hi..bizagra,

Buy 5000PE as that has more chances of "Profits"..

Nifty broke 5030 briefly only. A decisive break, then weekly support @ 4985 - all these levels need to be broken soon for the bearishness to continue..

Unknown said...

Hello Sir

I had covered my shorts in morning..
Thinking of gng long with respect to election results and some turn around here..

What do u suggest?

Cheers

Ilango said...

hi..askme,

go long @ 5040-5045 with 5033 SL for a short time only..

Staying short at rallies still holds good.

Ilango said...

Hi askme,

Never, Never try to trade against the trend...This one is lesson too. We need to be patient to "Hold" our positions or try to enter trades in the trending direction till we reach targets or get stopped out..

Rishi said...

stops hit for longs at 5040....what now Ilango?

Sridhar Raghavan said...

Hi Ilango,

What would be an initial profit booking target for short positions - aggressive as well as conservative?

Ilango said...

Hi..Rishi,

I am not at all for "Longs"..If you are a scalper, O.K to do it at different points. We just need to be patient with our "short positions"..

Hi..Sridhar,

Aggressive - @ 5000-4985.
Conservative -@ 4935-4905.

These may change with the unfolding of prices in the coming days..

Alternatively, Hold "shorts" with a trailing SL of 2 day highs or the previous day's high or 5 day ema/ avg...take your pick.

Unknown said...

Hi IlangoJi,

I am new to all these things, when you say "Hold Shorts" with a trailing SL of two days high, then in case of options, how do we interpret it?

Sorry for bothering with dumb questions, please oblige whenever you have time.

Thanks
Sujit Kane

Unknown said...

Hi Ilango.

Good Afternoon.

I am trying to understand Elliot Wave and was looking at the Banking Stocks in Particular.

SBI
ICICI Bank
Axis

SBI as we had discussed earlier has completed 5 and is downward.

Is my understanding Correct that ICICI & Axis have completed 3 and are on downward 4?

Also how do these waves of the stocks link with that of the Market / Nifty? What I meant to ask is assuming that the Nifty has completed 5 whereas these stocks have complete 3 though the Nifty comes downward ABC will these stocks attempt 5 upward once the 4 is complete?

Ilango said...

Hi..Sujit, Mayur,

I will clarify these by night.

Unknown said...

Hello Ilango ji

Whats ur view on Nifty now.
Waiting on the side lines..
4980 is a good support. Whats ur view now?

Cheers

satya said...

Sir can u tell me ur view on bank nifty,iam long at 9200 and now it is at 9100.Ur view please.

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