Dec 122011
Nifty(4866.70): Markets took eight sessions to rally from 4640 to 5099 but it has just taken 2 sessions to wipe out a little over 50% of those gains.
Nifty intraday charts
A relief rally now to something under 5000 mark would mark wave ii of the wave 5 (see chart). More specifically, the ideal level for this relief rally to end would be 4935 or 4980. So if our reading technical pattern of the intra-day chart is correct, a very powerful move (wave iii of 5) that challenges the Nov low of 4640 should evolve post this relief rally. As mentioned last week, a new low on or before the 21st of December seems likely.
Supports: 4810 and 4640 Resistance: 4935 and 4980
9 Responses to “Technicals 12th Dec2011”
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Jai
Any calls on Nifty……i had bought 5 lots of Nifty calls 5000 at yesterday’s closing… Till what level can i hold them in terms of Nifty cash levels….
As you have been reading my pre market notes from last week, expecting new low on or before Dec 21st. Just hold. 4620 to 4300 start covering. The way I would trade naked puts or calls – once they double cover half and forget about the rest
Jai
My emotions got me carried away.. All my positions were in short so tried hedging it with nifty calls just in case the markets rebound
hi jai,
is wipro on the radar for creating short, is doing quite well in down market, will it do the sharp catch up
regards
Not ideal but I think it will not cross 428-30. So if that sort of stop suits – go slam it 🙂
Jai,
I am tempted to play a bounce back on Reliance, with it being really close to its support ( as mentioned by you ) of 730. t could be a falling knife thou…..
Same for ICICI Bank …
Your views ?
Dont think Reliance is a good idea. Cannot capture all ups and downs. If you go long do not linger for more than a 1-1.5 trading session.
OK. Staying out then….
Jai,
I remember reading / hearing your comments that there might be one final leg up in IT. Have we crossed over and do you see any opportunity in shorting the IT pack ?
Regards