A pause may be @ 4577 zone. This kind of relentless selling can only be "Fund Selling" after duping all investors to buy for "Long term" in various medium. Notice how Nifty has been holding on to the 5-day avg(Blue) and climbing down steadily..(I like to call it Indian rope trick)
This shows in context the fall (small so far) compared to the relentless buying of 12 months. Excesses are being wiped out..
Now it has closed below week low ema too..
13 comments:
GOOD EVENING SIR
BANK NIFTY CLOSES ABOVE 50 DAYS MOVING EVERAGE SHOWS SOME STRENTH DUE TO ICICI RESULTS.
CAN WE GO SHOT IN THIS ?
PLZ UPDATE BANK NIFTY TEHNICALS.
THANKS 4 UR VALUBLE SUGGETIONS.
Mr. Pankaj has mentioned in intrapost that "sensex has nearly corrected to 61.8% level, if so please clarify nifty also corrected to 61.8% level from rise which come around 4689? nifty touched 4687..or any last attempt is pending? You know my technical knowledge level.. :( please don't mind..
Thanks for giving me "discipline" certificate, will try to hold it..but still loosing something in intraday.
QUOTE BY YOU - Believe in what you see and act on it on time having faith in your own views.. apart from TA these kind of wordings are giving mental strength..
Disclosure - Yesterday also in long and benefitted today...today also in long...(little too scary to overcross your opinions, but done) :( Dow is dancing..
Thanks and regards.
Hi Ilango,
To my amateur eyes, there seem to be similarities between the current fall and the May 2008 fall. Interestingly, both falls started around the 5200 levels. If the pattern holds true, it might lead us close to the 3900-4000 levels with brief stops at 4550 and 4350 levels. And all this in a matter of 2 months. Maybe I am just reading too much into it, but just an observation that I thought I should share.
Me second... Ilango sir..
Donno technicals, but having datas manually if so will touch the above levels in December?
Thanks and regards
hello ilango
where can we see ema? in which chart we can see that?
syamala
Ilango sir,
Your words "Fund Selling" may be absolutely bang on. The selling from the date of credit policy announcement may be due to
a. RBI expressing concern over Bank's parking money in liquid schemes of MF and considering how banks react to Governor's words, probably withdrawing resulting in redemption through sustained selling as the amount involved is quite mind boggling. Today ET carries this news item
b. Policy undercurrent is high interest rate regime to control raising inflation. This leads to rise in yield across asset classes. Consequently equities are also falling to give better yields.
c. I have read somewhere in the blogspot, short term interest rate on US treasuries are raising effecting a bounce in local currency (USD) and consequently rupee is taking hit and probably hedge fund redemptions and also carryforward trade winding up may be taking place.
Again as i said above, these are my views and may be wrong also..
thanks
sri
Hi, Syamala
In the following chart u can see ema.
customize it according to your need and best viewed in 6 month and large size.
the EOD chart is free.
http://www.icharts.in/charts.html
hello hemanta
thank you a lot .
syamala
Hi..Kiran,
Bank Nifty is downtrend and the strength you noticed on Friday is a one day affair. It will also continue the fall with intermittent pauses and bear rallies.
Hi..Sridhar,
You are right about Nifty reaching 3900-4000 levels in 2 months.
The way TA to be read in the coming days should be different with the weekly reversal confirmation in last week & a double conf. of a follow up fall this week.
I have posted some charts of IT index & wipro and they have reversed this week and heading into big falls while Nifty moves sideways after an initial fall.
Hi..Sujatha, Sriganeshh & Hemanta,
Thank you for your inputs.
Hi..Rajamani,
You have rightly pointed the Asian markets coming off their highs when Nifty was above 4800. Thank you.
Best regards.
ilango
Dear ilangoji,
look at dow chart.
http://2.bp.blogspot.com/_fJ202bMkEkU/SuvhiftbbBI/AAAAAAAAASs/UEinBhKjVA4/s1600-h/dow+as+on+30.10.2009-781547.PNG
Pankaj Shah
sir can we buy rcom now or wait for more down, next support?
"add to his wealth by writing calls on every rises..." - Sir which call would you prefer to write at this time -4700 level being current price... and how do we decide as to which call be written.
Mansukh
Dear Mr. Ilango,
I am new to this market and have just started learning elliott wave, which is pretty confusing. In your latest blog you have posted nifty weekly charts and have seen that you have marked the level at 2550 as A. This means that you have marked the full down trend from jan 2008 to March 2009 as first corrective wave A. Which means that we now in the B uptrend and we can expect a C wave which ends below the bottom of A. Am I correct in this assumption? a reply would hugely help my understanding of charts.
Thanks
Regards
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