Tuesday, August 6, 2013

Nifty Intraday Update-III


55 comments:

Ilango said...

A concerned reader writes: Please pay heed to his advice.

Just saw an option trade suggested by somebody to Short ATM options and cover with OTM options.

This is a bad strategy for novices. Margin required is high and risk of loss higher. Even if one wants to build a long/short butterfly it should be Long Higher Strike Put, Short Lower Strike Put, Long Lower Strike Call, Short Higher Strike Call.

Most important, shorting options should only be done after clearly understanding risks, rewards and pricing dynamics. Request you to discourage such tips and alert new members not to blindly follow such risky strategies.

Raghavendra said...

Dear All,

Faster retracement of last upmove ( 5566 - 6093 ) done in less than 50% time.

Reference : Upmove 5566 - 6093 = 20 days
Downmove : 6093 to 5566 = 10 Days

Raghavendra

Guru Krish said...

Maybe Bears mite take a breather from Thursday, reason - Federal Reserve Chairman Ben Bernanke is to speak...(IST 00.00 HRS)

dharmu mishra said...

respected llango sir as wave 3 in unfolding should we consider present run as 1 of wave 3 and as 5566 is now broken should we consider that as resistance as act accordingly pls guide sir thanks for everything

Sandy said...

Osc's sweeping the floors

Ilango said...

A "Pause" here..likely. Only for intraday, holding 5555.

IndieTech said...

Master- what could be target for on-going "v" wave? Any level where is prudent to exit shorts? Its just that this waterfall decline seems a overdone... but who's to say...

IndieTech said...

Master - thanks.. u answered just before I could ask :)

Sandy said...

BN critical 9000-9200 is the next good support

Bala C said...

Ilango Ji,

My salute...

Today's morning pre-market view

"Keeping below WLEma, prices would gather downward momentum.

Prices would attempt to break last weekly major low of 5566 initially & thereafter attempt 5477"

5566 achieved seamlessly.



Ilango said...

"5555" broken, attempt to pause negated.

ITradeForProfit Daily said...

NS nearing ND Sir's ATR Breakdown Target

Okay said...

Master

Is this the v) of 1...or
3rd has started?


Pattern Trading said...

Good afternoon master and all frns

Infy has given a wedge breakdown... kindly have a look on hourly chart...

dharmu mishra said...

respected llango sir what was the importance of 5555 sir asking just to understand the reason behind it

Prithvi Chidambaram said...

@master,

Is it 1st (v) or 3rd wave??

Ilango said...

@ Okay,

From the week T/F, it could be said to be the 3rd/ C wave unfolding.

Okay said...

Thanks Master...

ITradeForProfit Daily said...

Jai Ho ND Sir...

Jai Ho ATR Trading ...

Ilango said...

@ dharmu mishra,

At 5556.75, the intraday 2-min chart showed a 5-sub waves from 5607.15; hence, the possibility of a pause for intraday.

However, 3rd waves are powerful & tend to sub-divide.(Even the 5th waves are fast, swift)

Ravi Pillai said...

Ilango said...
A concerned reader writes: Please pay heed to his advice.

Just saw an option trade suggested by somebody to Short ATM options and cover with OTM options.

This is a bad strategy for novices. Margin required is high and risk of loss higher. Even if one wants to build a long/short butterfly it should be Long Higher Strike Put, Short Lower Strike Put, Long Lower Strike Call, Short Higher Strike Call.

Most important, shorting options should only be done after clearly understanding risks, rewards and pricing dynamics. Request you to discourage such tips and alert new members not to blindly follow such risky strategies.
August 6, 2013 at 2:05 PM
SIR
I was once foolish to subscribe to one such service just because that venture was wished well at our blog on its 100th day resulting in losing money and heart ache.. All such visit our site type visitors must be blocked intoto. No Hidden Messages.Whatsoever

dharmu mishra said...

respected llango sir thanks for explanation sir

shree said...

this is biggest fall in a day in current downfall

sarvesh said...

carnage..scary...haunting


riding

Okay said...

Which means 1 wave got over at 5677 Master?

Rajib said...

So many levels are just being washed away ... at >2% intraday movement ... even the mightiest trader won't afford to act on the levels & the momentum continues till the last candle!

Naturally the waves subdivide.

Expected 5533 also to hold ... now it's 5461.

Regards,
Rajib

vksoni said...

jai ho ilango sir

Ilango said...

@ Okay,

The major take away from EW study is to "tentatively label" and remain flexible considering the technical set up as reflected in our Tech.table or any other classical TA such as "macd".

Both the labels pointed "down".

Once a pause emerges with a close above DLEma, we could then look for "changing or preferring" a particular label.

This keeps us away from unnecessary interference from a study in "making trade decisions".

Sandy said...

Ravi Pillai good that you have shared !!

shree said...

panic bottom today???

Rakesh said...

Wow!!! Sir 5525 target achieved..Sadly not part of this downfall journey...still have got many inputs 2day from u and blogmates.

Thanks
~Rakesh

shriram said...

Master,

Where are the supports now ?

5477 odd or lower?

Sandy said...

Nifty went upto the rock bottom of the day channel.

Okay said...

Master,
Thanks for your Gems and Reminders.

PS: (Was anticipating the (v) of 1st of C to end somewhere here and had squared off the shorts around 5561.
Had not taken into account that 3rd of C may have started.)

Trader Junkie said...

and we can say the 50% retrace is done ! Thanks everyone, thanks Sir . Perfect EW+TT+FIBO playout.... the system has rewarded the followers...

Bye all !

Ravi Pillai said...

SANDY
Our Blog is like Anna University campus , [my alma mater ]gate.
All hawkers try to peddle their ware at the gate to gullible aspirants.
Where as Mackennas GOLD is waiting to be taken for one and all once you are inside the gate and OnTrack.

Ilango said...

@ shriram,

Considering the "deteriorating month TA" (Not yet close below MLEma in EOM data), one need to wait out atleast 2 weeks (incl. this week) to see how the week Ta works out by End of 2 weeks.

Prices precede events/ news. VIX is on uptrend.

I dare say any bottoming numbers.

Month log scale shows next reliable support @ 5200 or lower.

Month semi-log scale shows a support @ 5520.

Ravi Pillai said...

This keeps us away from unnecessary interference from a study in "making trade decisions".
August 6, 2013 at 2:49 PM
Golden Words.
Surungach Cholli Wilanga vaithal Enbhadhin Poruley ILANGO
Enbeyn.
Pallandu vaazhgha

Waquar said...

ilango ji,

Triangle only occur in wave 4 or in wave B, so if the correction was a triangle (as labelled by you)then it should be wave 4 correct ?

Ilango said...

3.00PM TT & Chart updated.

shriram said...

thanks master :-)

todays Day low has gone < 2Std. Dev from DloEMA.

BIG BIG impulse this !

Sandy said...

Waquar Younis fast bowling technicals ! - Joke intended for fun at the end of the day

Ilango said...

@ Waquar,

It is not a triangle, though I have labeled it "abcde"; it could easily be labelled as "abc".

At this juncture, technicals take precedence.

shree said...

5522 to 5544.......bounced.....5533 imp...

Saurabh said...

Master you rightly said the prices always precede the news.. and my broker just told me that this panic is due to brokers blocking or increasing limit for many mkt players as there is strong buzz on default of NSEL... if that news comes true there will probably be carnage all around.. it already has shown the trailer.

rose mary said...

Ravi Pillai,

I can only laugh at those who rely on tipsters... they made me to book losses saying option package is too risky & now i recovered all with single JNSAR trade now.

Sandy said...

No wonder people are J of Ilango and come for fishsing here!

Ravi Pillai said...

rose mary
JAI Ho to
JNSAR

shriram said...

Master,

Looking @ metals & Cap Goods among N50, safe to morph lables to Impulsive W3 ?

Kemps. said...
This comment has been removed by the author.
Kemps. said...

Thank You Master for your
Elliott wave observation..
You are indeed "The Master of Masters"..
I Salute You...

Prakash-Pol said...

குருவிற்கு வணக்கம்

நீண்ட நாள் கழித்து தங்களை காண்பது போல் உள்ளது எனக்கு. I am out of market for a while. Now back to market. முதல் நாள் முதல் trade lots of Gain தங்கள் பாதம் தொட்டு வணங்குகிறேன். இவ்வரிய வாய்ப்பினை வழங்கியதற்கு.

Ravi Pillai said...

SIR
Thank You for your guidance.
For what little I understood and followed or at least stuck to without doubt or hesitation I was handsomely rewarded in a weeks time.
If Only I Can Master The Nuances.

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