Whenever prices move far away from "averages", there is a tendency to "catch up" by either a sharp bounce or a shallow-time consuming correction.
On 07th Aug-Nifty Pre-Market View, we suggested the first support " 7530-40 with a weekly chart. We, then, stated on 08th Aug, Pre-Market View:
Hence, we look for a fall towards , preferably till 7535..
The corrective fall from 7842 to 7540 shows a distinct 3-wave fall.
The fall from 7752 to 7540 could be labelled with 5 sub-waves.
We, hence, look for a retrace upto 7625-44, above which market could rally anywhere, provided it breaks past the resisting trendline.
The reliable 9-Day rsi was resting at a critical support from where it could, at a minimum, force a reversal which would depend on prices holding above 7594 in the coming days.
Strength comes when prices close above 50 dsma @ approx..7617. 
14 comments:
Namaste Ilango Sir & Blogmates,
Bearish with Caution: It was carnage at the bourses, with the index closing below the psychological level of 7600 after many days, though best support around 7500, Sell on rise continues..: Option Analysis for 08-08-2014
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Sanjay Kr Jaiswal
Namaste Ilango Sir and blog friends
LV
GM Sir and Friends
good morning ilango sir and blogmates
Good Morning Dear Sir, Bros. & Sis's,
Have A Happy Day.
Hi sir
Friday view "Nifty closed below 50dsma on reaching the first critical support @7510-40" not valid now?
Good Morning Sir & JN Family
@ kumar k,
You're biased.
On closing basis, Nifty has closed below 50 dsma.
But on testing the support zone, Nifty reached 7540 and bounced upto 7578 on Friday with "highly oversold Hour TA". The bounce continues.
Today's 50 dsma is approx. 7617. There will be attempts to keep the prices above it. And there will be attempts to move the prices past 61.8% @ 7644 & another 61.8% @ 7671.
And these provide "Trading opportunities".
EOD close would provide the "Tilt".
Remember, markets continually changing with new information and their discounting into prices. Hence, flow with the market.
Master can you please let me know approx value of resisiting trend line value..
+WW triggrred with close above 7595 in 15 mins chart. 1-4 tgt lines comes at 7850+. SL would be a close below 7595 in 15 mins chart.
For investors :
Bharti Airtel has been in a long consolidation for past 6 years and is making a major breakout attempt on Long term weekly and Monthly charts. Keep a watch on it with a stoploss @ 324 on monthly closing basis.
Below is the chart link : http://www.mql5.com/en/charts/2224973/bha-airtel-w1-itrade-capital-markets
Chart may not look great - will post it on the group by end of day today.
Thank you sir
New Post Done.
Dear sir,
My expection is today Island reversal formation
Thank you
BVREDDY
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