Friday, June 20, 2014

Nifty's ST weakness, in both Day & Hour, has spread to "Week".

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty Pre-Market View.

FII's are buying interspersed with a day of selling during this month, typical of consolidation.
Prices, in the short term, have closed below two key ST averages.
"Consolidating 2nd wave" seems to be underway within a broad channel, as long as prices stay above the cluster zone of 7322-44;
The ST direction is "Sideways" till prices continue to close between DHEma & DLEma and continue to close below these two key averages (21 or 34 hr smas).
Aggressively Holding below 7589, Conservatively Holding below 7610, correction continues....
The strategy that has worked consistently well with low risk-high reward ratio is "Initiating a trade at 50%-61.8% retrace with 80% as SL". Adapt to it.
Note how prices are consolidating in a broader channel and remaining in the "upper zone", having positive bias. Once they break this middle line, the bias would turn negative.(It broke down yesterday)
Momentum would return above this channel.
Consolidation continuing for "investors" for the next big upmove as long as "7300" is protected.
 7579-7589, earlier supports & 7610 are two key resistances now and
7478-84 & 7433 are two key supports today.
I will not be available during the 1st session.