Wednesday, January 27, 2010

Nifty PreMarket View.

My critic, most often, chides me about the supports & resistances..When a downtrend is on, all the supports get broken till market exhausts it self and never attempt to catch a falling knife.
Similarly when a market is in uptrend, no resistances can be said to be stopping it.
My experience says(EW), if you can understand the nature of the up or downtrend, you can relax and wait for the "potential target" area and in major uptrends, it is quite difficult especially when it makes new highs.
In this downtrend, there are two distinct possibilities and both have, presently, a 50:50 chances.
1. Nifty is likely correcting towards 200SMA(4600 +/-), not in a straight line and then attempt to move higher as a complex "B" wave uptrend.This "b" of "B" can be choppy to say the least.
2. Nifty is correcting into its 3rd leg(C) of this major correction which presently presumed to be a contracting triangle(having 5 legs)targeting 4000-4200+/-.

17 comments:

Rajagopal said...

Very Good Morning Ilango.
Holding my Shorts.
Regards,
S Rajagopal

Kishore said...

Hi Ilango Sir, Since the opening itself it trading around S2 level, Is there a possibility of a slight pull back?

Ashutosh Agarwal said...

Hi Ilango Sir,
s per your earlier charts(http://1.bp.blogspot.com/_ot1WH5p4Xr4/S129AEexAtI/AAAAAAAAGU4/avsmYP_9934/s400/0.0.PNG) if nifty goes towards 4930-40 then market will up to 5050-5070 and then begin its next down move.

Rajagopal said...

Dear Anandan,
Market is Supreme. It has a great brain and its only motto is to keep us lesser mortals in our place by consistently disproving our understanding.

Hope you have not initiated any damaging longs...
Regards,
S Rajagopal

Ilango said...

hi..GM,

If there is any intra day bounce, it may start here.

Anonymous said...

Ilango pl give levels at time of posting for it will help those viewing later. Thanks
Sudhin

AAR VEE said...

hi,Gm ilango sir,
spotted positive divergence in 5D chart-MACD(jan22-today),nifty lower low,MACD higher low.sir is it a signal of bounce to come ,pl. comment.i think its significant

Ilango said...

hi..Sudhin,

I prefer everyone remembers the levels posted in EOD as well as the Premarket charts. I should not remind them when Nifty comes to such levels as one needs to act at such times to either book out or initiate a new trade.

4900-4930 is a likely buying level.And there is a huge amount of profit in the short trade. Part booking is advisable.

AAR VEE said...

i suppose we can go long on todays trend line break,sir?

Rajagopal said...

S Sir. Got the drift. Will be careful.
Regards,
S Rajagopal

manojag said...

Ilango,
GM,
RSI showing positive divergenge on hourly charts

Anandan said...

Hi, Rajagopal, Due to over night Global & Asia Opening clues mainly our market starts. I am sure market will recover from current levels and today may end with positive Note..
Bye..Anandan.R

AAR VEE said...

hi ilango sir,
there is a definite positive divergence in 5D MACD,it is the reversal sign ?

manu said...

hi sir..gm
didnt recvd mail fr unitech..
manunidhi21@gmail.com

@ anadan/sundar
tks fr mail

@rajagopal
i ws a fool intaiting long on unitech evn hedged
as patience pays..
regards

Rajagopal said...

Be very careful Anandan. My concern for my blog mates has doubled since I myself escaped a very wrong decision in this correction. Whenever I looked up towards the sky - I was not sure whether it was the Crow or my Pants that were flying.
Regards,
S Rajagopal

Ilango said...

hi..aarvee,

This is presently viewed as an intraday bounce only. Let us get more confirmations. Until then adopt "Sell on rallies".
As at present no selling opportunities, the lower level offers a small intraday buy trade.
4960-4980 will be a resistance zone...

I will update the Tech. table now.

Prabhakar said...

Mr.Ilango Sir,

I have Long position in NF at 4965. Where can I exit (or) book profit?

Thanks

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