Yes, Berlusconi will go and with him the 1.9 trillion euros of oustanding debts too will go away and lenders are going to fall over each other to lend money for free to Italy. Ok, lets get back to reality.
Nifty (5289.35): Markets opened higher only to come down lower, make a small false break below friday's low and then head back higher. These small false breakouts are small clues that market leaves us, typical of B waves, that market is itching to go down.
Nifty intraday charts
So, potentially we have one more leg up in the short-term that is likely to end around 5334-5356 (we noted this as the ideal level since Friday). Watch out India Vix has dropped from 39 to 23, nearing the levels it was before the August decline. A little more of complacency is likely to push markets to danger zone.
If markets do exceed 5356, watch out for the 200 DMA at 5395 (and falling). State bank the biggie reports today. May be this could hold some surprise, positive or negative. The technical structure for SBI says its undergoing correction but we are unable to take a stand here, the possibility of a strong drop to 1800 or a mild 3-4% upmove are 50-50, so we are not able get much clues through this stock.
Keep side-counters like Voltas, Petronet on screen we will try to do a small futures trade here under ideal conditions.
15 Responses to “India pre-market Nov 9th 2011”
Sorry, the comment form is closed at this time.
Hi Jai,
VIX is the fear index. so if VIX has declined, it means the market will not fall. Correct. I am short massivley on the market. What will be an appropriate SL? I have a fear that we are actually looking at 5650 before any downfall.
Thanks,
Vivek
Hi Vivek,
Not true, more often it means markets have become complacent. Sometimes vix low before a big move and then people come to buy protection. If reliance closes below 855 I think bears would have done their job.
Cheers,
Jai
hi jai
you had given a call regarding going long on united spirits which we closed as per instruction, today it has shot up to 916.00, is it a good idea to short it at this level since we expect the market to go down
regards
No weakness yet Shabbir, not a good idea. I’ve been edgy on the long side, bcos that is against the trend. We identified HUL, United Spirits, Ambuja – all were outperformers but did not gain anything. My worst trading in the last 6months. Now when market falls back to trend we should be able to trade more comfortably.
Best,
Jai
no issues, as long as one is able to protect capital, rather than loose it in frivolous trade, anyways u can’t be winners always there is always next time if your capital is protected
regards
Dear Jai,
Today for the first time i felt better…. coming out of my confusion. Seems ur call of uncanny resembalnce to 1 year historical facts just starting to show its signs 🙂 Around 7-10 November last year we made top and again statring to show first sign of weakness….which has been eluding us for last 1 month.
Regards,
Vipan Gupta
WD Gann always paid attention to highs and lows around anniversary of important peaks and troughs. They were time resistance.
Regards,
Jai
Jai,
A query, I know we got stopes out on Gold. But……any thoughts ? With a fresh set of eyes !
Regards
No set up yet but even though there is no setup it might make sense bcos the dollar Index is racing past 78. Gold priced in dollar will have to take a beating. Right now its a safe haven trade – in my screen only Gold and DXY are green among everything else that is red. 1805 stop might work.
Best,
Jai
Jai
can you please post the target and the stop loss for Hindustan Zinc short call which you gave out today…I think the Stop Loss was 132, i dont seem to remember the target.
105.
hai Jai
when u send sms, pls include your name (Jai) or your site name.pls
U have too many friends in Singapore? 🙂 Will do.
hai jai
where to check indian VIX index any website can u tell me
It should be available on NSE site itself, if u want a free chart look at icharts.in/charts.html and type indiavix in the symbol field.
Cheers,
Jai