Tuesday, May 27, 2014

Nifty is poised critically at the mid-channel support.

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty Pre-Market View.

FII's have resumed NET selling in small quantity.
Prices continue to close above most key averages.
Green "iii" took precedence over the rest & Nifty rose to 7504 in the opening session but the last rise retrace from 7442 did not hold and the "Flat Correction" was back in the contention & the direction is now "mixed" in the ST.
Holding above 7251-69 or 20-30 pts below DLEma, uptrend could resume....
The strategy that has worked well with low risk-high reward ratio is "Initiating a trade at 50%-61.8% retrace with 80% as SL".
On Monday, such trade got stopped out, the last rise (from 7442 to 7504) broke its "key retrace at 7454-66" and fell sharply, retracing completely 7301 too.
(Channel at 7251 and last low at 7269) Hence, Holding above "7251-69" is stated above.
Last fall may have started from 7483...and a sell on rise signal is in place which could take the prices to DLEma or lower if prices are kept below 7441.