Tuesday, January 18, 2011
Nifty shows exhaustion in downtrend with +ve div./ no new low/ close above prev. day high, etc.,
Larger trend remains down but the downward momentum is neutralised with a close above Day Low Ema. It should stay that way in the coming days for a reasonable retracement rally to emerge in the coming days. At which point the selling will emerge: there are many resistances which were once supports. Earlier bottoms of 5690 & 5721 should hold to take them higher.
Elliot's Impulse waves.(Part-5)
IMPULSE WAVES :- The Basics Waves that move the market in the direction of its main trend either up or down are called Impulse waves. 1....
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5010-5039 supply zone proved a ST resistance. 5002 proved a break down point. 4945 to 4982 proved a corrective rise, monitored with an ...
9 comments:
John
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lol RRKnan,
lol, rrkhan, nice one. Let me know if you find one and I'll join him too.:)
Dear all,
Just now saw the OI of NIFTY and found that 5600PE has reduced OI by 13% (which is strange considering NS has moved up for last 2 days). Also OI in 5700PE also reduced. As compared to that 5800 & 5900 CE has seen increase in OI.
If i am reading it correct, this shows that weak bulls are taking advantage of this upmove and covering their positions for the next move down (which may go below 5600, considering huge reduction in OI).
Also, the trading volume of SBI has been much less as compared to the down days of past week, again indicating that presently buying is not coming in and its just some short covering.
Views of OI experts and seniors appreciated.
Regards
Naveen
@ rr - lolz :) after yoda me too ready to join :D
naveen - i donno about OI, but as per hrly chart it's showing resisting 5760 only, decesive close above only +ve. let us see 2morow.
@ SKMishra,
I am interested your AFL, kindly forward the same to keerthi405@gmail.com
Chandrabose
Dear naveen,
As Dear ilango said"Earlier bottoms of 5690 & 5721 should hold to take them higher"
Particularly I would watch 5721 for NF tomorrow.If NF shall show reluctance to trade below 5721 then should be hopeful & helpful for Bulls.
Your readings are correct but when there is buying from FII in INDEX FUTURES,INDEX OPTIONS & STOCK FUTURES & no selling evidence in cash & reduction in NF O.I at the end of the day then the next trading day becomes crucial for both Bulls N Bears.The intra developments of O.I.in nearest strike price options & in NF become important for next journey.
Dear sujatha, I shall watch 5760 but if Nifty shall try it in the latter trading Hrs.with much higher low,then the intensity may nullify due to consolidation at lower level.
Good cues from Global markets shall be bonus for Bulls so Let us see.
Dear naveen, you said... Just now saw the OI of NIFTY and found that 5600PE has reduced OI by 13% (which is strange considering NS has moved up for last 2 days).
My observation is that, last week, NIFTY 5600 PE add 45 lac in open intrest around rate of Rs 65 to 80. Today rate was down to Rs 25 - 30, and traders booked profit, that why open intrest down by 13 lac
1. The Puts are covered @ 5600,5800,5900 and 6000. I believe it is profit booking.
2. With 62L and 64L OI @ 5800 and 5900 calls, they are not huge resistances.
3. I think with 69L calls and 70L puts, 5700 holds the key for this series. If the call writers cover, we might get a 5950 expiry. Else, it is 5450 expiry.
4. Yesterday FII bought 1620 crore worth of index options. The option table showing significant addition @ 5500 puts and 5900 calls. Which side did they buy?
I am unable to decipher.
Let us follow JNSAR. It will safe land us either in a blast or a crash.
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