Nifty' correction continues with a minor pause @ low ema.

Nifty is stepping down from the top half of the channel to the bottom half and showed a bit reluctancy at "low ema" Getting closer to the 20sma and the time it takes to get there will help us to understand this correction better.
Hour charts are at Oversold zone. Depending on world cues, it can go to the resistance or supports as indicated.

Nifty Intraday update-III

NIfty Intraday Update-II

Nifty Intraday update-I

Nifty PreMarket View

Sundar's levels are : 5207 to 5317 with a downward bias.

Nifty's first sell after persistent negative divergence...

Due to UPS failure, I had to rush to express my "thanks" to Viren, Shai & Sundar before getting logged off at 3.15PM.
Such classy blogger will add tremendous value to all of us. "vtrender" will continue to provide their selfless service to all of us and they will be part of "My blog list".
Sundar's calculated lower level of 5250 along with downward direction proved quite useful...adding to our conviction.
Moneyvistas has sent me a link on "Market profile study materials". I appreciate his noble gesture.
This calculation has worked on three days in a row. Lets follow it quietly without much of an excitement....There is an unseen "Blessing Hand" on all of us and the sincere work as well as serious following will definitely benefit the humble amongst us.

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty PreMarket View.

"Sundar" has gone through vtrender blog hosted by Viren and shai and he has applied his knowledge gained there about "Calculating the likely high & lows" for Nifty. He found the likely high as 5332 for 29.03.10 and Nifty made a high of 5330.
For today, he has calculated it as 5354 to 5250 with a bias towards lower level(Latter part) based on another study of "Options".
I have suggested him to test it out for few days initially and it could be combined with other studies for more efficiency.
I feel blessed to have such "sincere" people around me.
Thank you...Shai, Viren and Sundar.

Nifty stretching itself with Poor AD ratio.

Nifty Intraday Update-II

Chart updated at 2.30PM:

Nifty Intraday Update-I

Nifty PreMarket View.

Applying Divergences & ORB with Hour time frame.

Satheesh's quest for knowledge should lead to some profitable trades....only with some patience and persistence..The trick will be to to take a step back and see the bigger picture. That is to see a daily chart and fit in the "hour" chart into it.
1. I credit lots of success to "EW study" but never in isolation. The success rate is good only because it is combined with TA.
2. "Divergences play" alone bring you the biggest riches time and again. The more pronounced they are, the more gains they get you. And when these divergences coincide with a "perceived completion of EW ", the conviction level in a trader goes high to hold on to that trade.
The two lows 4766(3rd wave) and 4675(5th wave) coincided with a clearly pronounced positive divergence and the result has been extraordinary.
Subsequent to that we have had one -ve div but that happened just after a steep rise and the oscillators showed -ve div but it is to "time adjust" the steepness in prices.
Currently a negative div. is developing but there is some "doubts" in the EW count. The strength in bank Nifty & certain stocks may cushion any falls. This one would test one's patience and one should remember the main trend and its trending up within the channel.
3. Macd defines the "Moving average convergence and divergence". One of the potent steep move indications has often come from watching the short term moving averge converging towards a medium term average (Here we have taken 35hour/ 5-day & 70 Hour/10-day sma) and then start to turn away slowly without touching or just touching the medium term average and thus setting up a "fast rise" scenario.This set up often concludes the "corrective or sideways" scenario and commencement of the next up move.
4. For the trend followers, a continuation of Higher high(HH) and Higher Low (HL) will indicate the continuation of trend and they can simple hold on to their position till this set up changes to LH & LL.

I have put up nearly 14 "Stock Charts" in my "Stockwealth Blog" with divergence factor figuring prominently. Exchange your observations by either sending a chart or name of the stock by emailing to me and I will try to put it up for every one's benefit. It is not possible to monitor so many stocks daily consistently.
"Piyush Sharda" asked about "ORB" and selecting the correct day to use it.
I wish there is a simple answer to this. If one has understood the above lesson well, use of "ORB" too could be applied selectively.
Whenever you see an extreme reading in the indicators, use the ORB. It will work bothways meaning if the extreme reading is at the top in an up trending market, you get a corrective move down and ORB will guide you. Similarly when the reading is at the bottom, then the possibility of the correction terminating and the uptrend resuming and ORB will confirm that.
Even if one follows it consistently, the overall results will be very good after deducting the stop losses.

Sharing your little share too..!

As a California tourist unaccustomed to single digits, the bitter cold of that December day in Washington, D.C., was dampening my holiday mood. Accounting for the windchill factor, the temperature was below zero. When I ducked into Union Station, I hoped only to get warm. What I got was a lesson in the real meaning of the season - from a homeless person.

Warmth was slowly being restored to my hands and feet as I settled onto one of the public benches with a gleaming cup of coffee. Now I was ready to relax and do some serious people-watching. I noticed a homeless man seated nearby and several tables of diners spilling out into the great hall from the upscale America Restaurant. Heavenly aromas from gourmet treats were tempting me to consider an early dinner. From the longing look in my neighbor's eye it was obvious that he, too, had not failed to notice the banquet taking place around us. I wondered how long it had been since he had eaten anything. Expecting he would approach me for a handout, I welcomed such a plea on his part. He never did. The more I took in this scene, the crueler his plight seemed. My head and heart were battling it out: the former telling me to mind my own business, and the latter urging me to make an immediate trip to the food court on his behalf.

While this internal debate was raging, a well-dressed young couple suddenly approached. "Excuse me, sir," began the husband. "My wife and I just finished eating and our appetite wasn't as big as we thought. We hate to waste good food. Can you help us out and put this to good use?" The kind stranger handed a large styrofoam container overflowing with goodies. "God bless you both. Have a good day," came the grateful reply. Feeling good about what I had seen, but dismayed by my own lack of action, I observed my neighbor's response to his sudden good fortune. First he scrutinized his new found bounty, arranging the soup crackers, inspecting the club sandwich and stirring the salad dressing. Then he slowly lifted the lid off the soup, inhaling the aroma and cupping his hands around the steaming bowl. It was obvious that he was going to prolong the enjoyment of this miracle meal. Finally, he appeared ready for that long-dreamed-of first taste. Meticulously unwrapping the plastic spoon, he filled it to overflowing, lifted it towards his mouth and — with a suddenness that stunned me - stopped dead in his tracks.

Nifty's short term stretched but the medium term looks fine..

Nifty is getting resisted @ the "Centreline" which has given support to it till Deepavali. It may pause before heading higher. Quality of "that" pause will determine the upsides.
Unlike the weekly chart, Nifty is trading here in the "upper portion" of the channel. A break below 5230 may drag it further down. Channel resistance comes @ 5340...Will it go that far..?/


The micro.."Hour" shows a possibility of another high before the drop begins..

Nifty Intraday Update-III

"As suggested earlier" SELL @ 5305-5315NF with a SL 5350.

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty PreMarket View.

A Good Day to put to use "ORB" Strategy..

Nifty firming up another support @ 5200.

Dear "Mynac"..We will definitely miss your intraday update on OI & interpretations. You have been quite right about "5220". However, do spare some time during the evenings & continue your contributions..

I remember initiating a "minor sell" @ 5135 10 days ago for a target of 5035 but Nifty did a shallow correction till 5090 and moved higher. In a similar fashion, another "mild sell" was initiated @ 5257 for a target of 5150 or 5100 but Nifty seems to be basing 5190-5205 as a new support.
Though the daily continues to be in the "OB" area, hourly time correction done with a shallow trading and the "14-Rsi" gave an indication of the impending move higher and Nifty followed it up accordingly.
And finally, by closing above 5240, Nifty gets its momentum back for higher levels.
World markets have been moving higher quite steeply for 30 days now, typical of a terminal burst. AD chart is yet to develop a broader negative divergence for caution.

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty PreMarket View.

Shubh Ram Navmi

"Rama, the ancient idol of the heroic ages, the embodiment of truth, of morality, the ideal son, the ideal husband, and above all, the ideal king, this Rama has been presented before us by the great sage Valmiki. No language can be purer, none chaster, none more beautiful, and at the same time simpler, than the language in which the great poet has depicted the life of Rama."

-- Swami Vivekananda

You must have heard that Jesus walked on water to save the drowning Peter, his disciple. There are many accounts in India of persons who walked over water in this way, due to their tremendous faith. This story is about a farmer's daughter whose duty it was to carry fresh milk to customers in various villages. One of the customers was a priest. To reach his house, the milkmaid had to cross a good-sized stream. People crossed it by a sort of ferry raft, for a small fee.

One day the priest, who performed worship daily with the offering to God of fresh milk, finding it arrived very late, scolded the poor woman. "What can I do?" she said, "I start out early from my house, but I have to wait a long time for the boatman to come." Then the priest said (pretending to be serious), "What! People have even walked across the ocean by repeating the name of God, and you can't cross this little river?" This milkmaid took him very seriously. From then on she brought the priest's milk punctually every morning. He became curious about it and asked her how it was that she was never late anymore.

"I cross the river repeating the name of the Lord," she replied, "just as you told me to do, without waiting for the ferry." The priest didn't believe her, and asked, "Can you show me this, how you cross the river on foot?" So they went together to the water and the milkmaid began to walk over it. Looking back, the woman saw that the priest had started to follow her and was floundering in the water. "Sir!" she cried, "You are uttering the name of God, yet all the while you are holding up your clothes from getting wet. That is not trusting in God!"

Power of faith!

Our next tale is another example of the same. It comes to us from one of India's great storehouses of stories, the Ramayana.

Ravana, king of the demons, had an older brother who was a truly spiritual man, very unlike the rest of his family. Others came to him as a holy man; they knew his great devotion to Rama, whom he looked on as God in human form. One disciple of this older brother wanted very badly to go from Sri Lanka, where he lived, to India, to see Lord Rama. There were no boats to take in those days. When he explained his great longing to his teacher, the latter went aside, and taking a large leaf, wrote upon it the name of Lord Rama, wrapped it and told the disciple. "Don't be afraid. Keep this in your pocket. The power of this alone will carry you across on foot. But look here: the moment you lose your faith in it, you will be drowned."

The man set out and he was walking easily on the water on his way to India, when suddenly he became curious.

"What could this be, so powerful to work this miracle?" And pulling the packet from his pocket he opened it. "What?! Just this -- a leaf with the name of the Lord?" And as doubt crossed his mind he began to sink.

The story doesn't say so, but Rama Himself must have come to him and lifted His devotee from perishing. We can hope so!

The same book tells about Hanuman, the monkey-devotee and the way he too crossed from India to Sri Lanka. King Rama and all his armies and followers were laboring to build a bridge over the strait. But Hanuman said, "What, I have taken the name of Rama -- then is there anything I cannot do?" He had such total faith in the power of his Master's name, that in one big jump he cleared the many miles of water, from the tip of India to the island.

These three tales used to be told by Sri Ramakrishna and Swami Vivekananda. Having faith in oneself, faith in the teacher, faith in the words of scripture, and faith in God, they said, we must succeed.

Nifty does an inside day..

One amazing thing in the Pivot table for Thursday, the settlement day is "5221", the pivot number talked about by Mynac as a critical number during the day and the S2(5171) and R2(5271) are the ranges that was discussed few days back based on OI interpretations. Knowing our market, it could touch both the ends with the pivot right at the centre.

Nifty Intraday Update-III

Nifty Intraday Update-II