"5235" may act as a pivot as it did in last settlement and staying above that Nifty may attempt 5255(day ema) & 5278+(Day high ema). Target for the breakdown would be 5200-(5400-5200) = 5000.
Bullish: Considering the fact that the correction has been , so far, in time only and the oscillators which indicate the status of the correction are nearing "Oversold" levels, one could argue for going long around 5225-5245 with a SL 5195 and this need price follow up confirmation of a move past 5285 & 5315..
Bearish:First leg of the correction was from 5400 to 5160 and the counter rally stopped @ 5342. The next leg of the down move on with its first down over @ 5202 and a bounce is on and if this is restricted to 5285 to 5315, next big down move should unfold by Wednesday or Thursday. Weekly TA too is in downtrend. Lower Highs have been forming - 5400, 5342 , 5295.
A simple observation of Dollar index chart suggests of an impending correction towards 80.0 or lower provided 81.75 is breached. Early indication could be a break of 82.20.This down move may complete the correction and the next upmove may unfold.
However, if it crosses its recent highs, it will be presumed that the correction is already over and it is in its major 3rd wave(or "C" wave.
As $ index has an inverse relationship to equities, watching the same for a couple of days would give us a clue to the short term direction....81.75(82.20) or 82.90.
15 comments:
Probably Today's close will be around 5285. Can someone tell short term targets of dlf and itc?
Good morning ilango sir and others
see what happens when head and shoulders appear
at the top of the trend. I am posting the chart of
ultratech cement.
http://niftychartsandpatterns.blogspot.com/2010/05/ultratech-cement-head-and-shoulders-at.html
thank you
Good Morning all.
gm all
Dear Ilango and Blogmates,
Very Good Morning,
As usual very nice example of analysis,when it is most required.Yesterday's 900000+ addition in NF O.I. and 1100000+ addition in 5300 CE are the major threat for market when and though Nifty is trading in it's down channel.900000 + addition in 4800 PE is also interesting at this moment and shows the hidden threat if any.After many days later FII are net sellers in both equities and NF's.So I Will be very cautious today.Thanks.
P.S.
How much time I shall I spare today ,don't know so Good BYE everybody,have a nice trading day...
good morning ilango
and all blogmates
@raja thanx for abb update
and i kept it as s&r at 775.
that stock is also my better half favourite.
she bought it bcoz she like its name & ordered [ :-)] me never to sell it, whatever may happen.
i have seen 1600 with this stock, and 350 which were 2009 lows.
Gm Illango Sir,& all blogmates
Good Morning Sir and Friends.
Sir - thanks for the very detailed and clear analysis - even I could understand it.
Dear Mynac - Have a nice time.
Dear Dr - Just shared what I learnt - along with ACC it is my favourite alse (natural after ABB it must ACC - must also be in your BH's list). Since it is getting bottomed out will check the TA and average at best low - basically a good stock will rebound from news hammering.
I am with CAIRN
GAIL
HEROHONDA
NALCO
RANBAXY
SBI for Long in Cash and
ABB,Siemens and Bhushan steel Short in Futures.
Good Trading.
update on global events---
The motormen’ strike may have thrown Mumbai out of gear but the bulls are set to chug ahead. The engine of course is strong global cues. US stocks rallied on the back of positive economic reports. Multi-billion-dollar M&As are back, which can be taken as a good tiding as well. Europe too recovered from the Greek woes. Asian markets are mostly up, though Chinese markets are down following last week’s monetary tightening.
Volume may be hit due to the railway motormen’s strike. Suddenly, thousands of opportunities may appear to come your way but make sure you don't get carried away. Tuesdays are often infamous to start one way and end the other way. Despite the positive outlook for the day, the overall prospects appear to be rather murky in the near term. The key indices have been choppy and rangebound for several weeks and that trend may not change for some time to come.
Meanwhile, the Greek storm has subsided, at least for now. Hopefully, the massive EU-IMF bailout over three years will help Greece take a deeper look at what went wrong. For the time being though, the rescue has soothed frayed nerves over a possible sovereign default. Still, some worries persist over the health of the other members of the PIIGS nations. The Greece issue also shows how the stimulus-driven efforts to tame the recession can boomerang. Moral of the story, heavy deficit-ridden government balance sheets need urgent repairs.
Influential investor Warren Buffett said he doesn't think Goldman Sachs did anything wrong in the sale of subprime-related securities at the center of an SEC fraud charge and potential criminal probe from the Justice Department. Buffett's Berkshire Hathaway has a big investment in Goldman Sachs' preferred stock.
GM All!
Today we may not see beyond 5250 / 60
Good morning Ilango Sir and all blog mates
Headed 2 test 5220
sir
took an intra long at 5222 nf based on hammer in 5 min chart
NEW POST DONE
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