Nifty(4934.75): Once the important support at 4985 gave way, markets got rattled and a quick swoon followed. It was a combination of stop triggering and put writers of 5000 strike stepping in to cover their positions. What we had labelled as blue wave V turns out to be an extended blue wave iii. And only now the blue wave v of the red 3 seems to be in progress.
The supports for the markets are likely to be found around 4860 and 4830 the former gap left post the October 4th low. One fibonacci relationship ratio between blue wave iii and blue wave v also exists around this level. On the hourly charts, there is a fair amount of positive divergence developing and this is normally a precursor to a relief rally. Needless to say we will look to sell into it and the former target area of 5150 ballpark still holds good. But that is a few sessions away. If you are trying to create short positions, keep your position size small.
Long USDINR from Oct 21st revised stop 50.05 (November fut) -(partially booked day before yesterday)
Short Onmobile Global tgt 52 and beyond stop 62 at close
Silver Stop $35.7, revised stop $34.2
Silver had a big drop last night and this morning went below $31 in the asian session (currently at 31.5)