India pre-mkt 14th Oct

 Indian Market/Stocks, Premium Content
Oct 142011
 

Nifty(5077): Nifty opened near the high of the day but ended right near lows of the day. Was that the end of the corrective rise? Possibly. The next couple of sessions are going throw some vital clues. The intraday chart for Nifty is shown below:

Nifty - intraday chart

We can see very clear divergence between the price at the top and momentum shown at the bottom pane. Normally, these are precursor to a change in trend. In opening trades, if we see Nifty rise but struggle under 5127 (spot) or even 5105, this might be another sign that the corrective rise from 4728 to 5136 may have run its course. We will see if we can pull a short-term trade in that case.

Volume footprint : 5040-5010 zone needs to be taken out for bearish play.

 Posted by at 2:47 am

  14 Responses to “India pre-mkt 14th Oct”

  1. mukta says:
    October 14, 2011 at 2:54 am

    Hi Jai,

    Should we hold on to the longs on individual stocks created yesterday? Thanks

    • Jai says:
      October 14, 2011 at 3:11 am

      Dear Shaleen,

      Trade set ups will be crystal clear, with stops and price objectives. Either during pre-mkt or during mid market alerts. Stocks will get mention here so that you can keep it on your screen. No setups will be random or arbitrary.

      All the best,
      Jai

      • mukta says:
        October 14, 2011 at 3:21 am

        Thanks for the prompt response, Jai.

      • Rangeshh says:
        October 14, 2011 at 10:30 am

        Hi Jai,

        I gambled a bit by opening up a short position in wipro Nov futures at 365. Will it work?

        Thought it right at the stoploss mentioned by you.

        Thanks

        • Jai says:
          October 14, 2011 at 10:51 am

          The stop is fine. I have a strange feeling TCS might do what Infosys did last quarter 😀 But I like feelings to be translated into price action and see it in the market. May be you wud be safe.

          If your risk appetite is higher you guys should go ahead and pull the trigger on the potential that I’m watching but understand, sometimes you guys will make some and sometimes wont. Nothing wrong with it, so long as you guys understand what you are getting into. (Even yesterday someone wanted to pull the trigger on Jubiliant it is down 2.5%-3% today)

          All the best,
          Jai

          • Rangeshh says:
            October 14, 2011 at 11:13 am

            Thanks for the quick response Jai. Please let us know your thoughts on wipro if you happen to change your bearish view. i thinks it has closed at 363.30 on spot. Do you think it has potentially triggered it?

            Thanks

  2. rdesikan says:
    October 14, 2011 at 10:59 am

    Hi Jay,

    Huge move today in IT scrips and many selected mid caps and Nifty had a strong close. But does this mean that we can confidently enter longs in stocks/Nifty on Monday? We need your guidance please.

    Regards

    • Jai says:
      October 14, 2011 at 11:04 am

      Dear Desikan,

      The larger trend is still down. The problem with counter trend moves is that it gets short-circuited without warning. If it does look like the market will head higher further, we will create longs in counters that will go up whatever happens to the market or at-least keep our losses small if the market abruptly turns around. Will pour over a lot of charts during the weekend.

      All the best,
      Jai

      • rdesikan says:
        October 14, 2011 at 11:29 am

        Hi Jay,

        Thanks for the prompt response. Next week will be very interesting as it will firmly determine the trend for the expiry in October.

        Regards
        Desikan

  3. sara2002 says:
    October 14, 2011 at 2:00 pm

    when your planing to give ” Trade set ups will be crystal clear, with stops and price objectives.”

  4. gupta_vipan says:
    October 15, 2011 at 1:57 am

    hi Jai and everybody !!!

    Just loged in for the first time on this blog ……..Jai Just wanted to ask will u be providing the trading opprt on the blog it self or would send notice or sms on mobile also…becaus in that case we need to keep the blog open all the time during trading day time.

  5. rdesikan says:
    October 15, 2011 at 4:51 pm

    Hi Jay,

    I have a small suggestion. There is no log in link on the home page. So if we try to access the blog from a different computer, then how do we log in? Well, I had to access my mail to get the link that you sent for the log in page and get through. Instead you can create a small link on the home page which leads to the log in page for the premium content. Thanks.

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