Just Nifty: September 2012

Saturday, September 29, 2012

Calmness descends on acceptance.

A King wished to select a good Chief Minister for his Kingdom. In his court were four men with equal qualification to hold the post of the Chief Minister. He therefore decided to conduct a test to select one from amongst them for the post.

One day, he called all four of them and said, 'I have a lock. It is a scientific lock, made according to mathematical calculations. Tomorrow morning all of you would be given a chance to open this lock. The person who succeeds in opening this lock within the shortest time would become the Chief Minister of this Kingdom.

With a desire to become the Chief Minister, the men sat up the whole night, browsing ancient writings regarding locks, mathematical designing etc., and made notes. Only one amongst them looked at a few palm leaves and then went to bed.

Nifty shoots a star.

The Shooting Star formation is considered less bearish, but nevertheless bearish when the open and low are roughly the same. The bears were able to counteract the bulls, but were not able to bring the price back to the price at the open.
The long upper shadow of the Shooting Star implies that the market tested to find where resistance and supply was located. When the market found the area of resistance, the highs of the day, bears began to push prices lower, ending the day near the opening price. Thus, the bullish advance upward was rejected by the bears.
The pattern requires confirmation from the next candlestick closing below half-way on the body of the first.

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty Pre-Market View.

"Consolidation may have ended" with a double bottom @ 5640.
Break-out point coincides with 34Hr sma @ 5675 initially & then above 5695..
Weakness would be below 5660 initially & then below 5640.
Inability to clear 5705 today & maybe 5720 would mean that consolidation continues....

Nifty continues its consolidation with a false break-out & a double bottom...

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty Pre-Market View.

26th Pre-Market View: Support lies @ 5629-37-42(23.6%/50%;DEma;34Hr sma).
Nifty found the support @ the middle point.
Break-out point is @ 5680-85, above which 5705-10 is the first hurdle.
Weakness would be below 5660 for 5645 or DLEma.
It was suggested that the consolidation could get completed by wednesday. A 4th wave channel break too seem to be confirming it. Now the price confirmation is awaited.....

Nifty finds support @ 5DEma while closing weak below DHEma.

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty Pre-Market View.

Nifty closed below 5675-77,(HEma/ 21Hr sma) indicating weakness.
Next support lies @ 5629-37-42(23.6%/50%;DEma;34Hr sma) failing which
it could go to 5604-07(DLEma/61.8%).
Rising 10 DMA is the next reliable support.

Nifty continues its consolidation below 5700.

Nifty Intraday Update-I

5700 has been firmly rejected for 3 days in a row.
Now in search of a reliable supports around 5600..

Nifty Pre-Market View.

"5663-66" provided support during the consolidation and
that remains the approximate support zone of "CT".
Resistance of the CT comes at 5695 for the first hour.
For an intraday trader, strength above 5680.
Resistances @ 5700-15 & 5730.
Supports below 5663, is @ 5634-49.

Nifty consolidating for the Hour T/F weakness.

Nifty Intraday Update-II

CT break-out above 5702.

Nifty Intraday Update-I

(v) the of vth of 3rd is on if holds above 5677 for a new high.

Nifty Pre-Market View.

Nifty is @ channel top with "OB" readings along with -ve divergences in Hour T/F.
A consolidation is likely with the completion of 3rd. If 5650-5665 holds, 3rd could attempt another high only if the global cues help.
The lows for the consolidating range would attempt to move into the start of sub-wave iv(5652) and could move towards 5577 or lower, the end of sub-wave iv(5537).
Considering the strong 5700CE & 5600PE writings, this would be the immediate range.
Hence, make your trades accordingly.
Aggressive traders would liquidate on those huge gains and may initiate small shorts & trade those positions for intraday.

Lakshmi follows Saraswati

In the great epics of India, Ramayan and Mahabharata, war ends not with celebration of victory but with transmission of knowledge . In the Ramayan, Ravan lies mortally wounded on the battlefield and the monkeys are celebrating their victory, when Ram turns to his brother , Lakshman, and says, “While Ravan is a brute, he is also a great scholar. Go to him quickly and request him to share whatever knowledge he can.”

The obedient Lakshman rushes to Ravan’s side and whispers in his ears, “Demon king , all your life you have taken, not given. Now the noble Ram gives you an opportunity to mend your ways. Share your vast wisdom. Do not let it die with you. For that you will surely be blessed.”
Ravan responds by simply turning away. An angry Lakshman goes back to Ram and says: