Nifty(4710): As promised the bigger picture on the Nifty
Basically, the purple wave 3 shown on chart is still in progress and is likely to end around 4380 when the red wave 5 completes its move. This is my preferred road map for the Indian markets. As mentioned in my January 19th 2011 interview with CNBC, the process of retesting the 2009 lows is very much on the cards. We will have some more clarity as to where the markets are headed once the the red wave 5 completes.
Open positions:
Silver: Short at $34.2 stop revised to $33.5, partially booked at $31.4
Apollo Tyres: Long at 64 with stop 59 Target 71
Hero Moto: Short at 2025 with stop at 2130 tgt 1900
Hero Motors - Daily chart
Watch out for Hero, the medium term picture is about to turn a corner, volumes picking up on downsides. Below 1900 might even drop to 1450. We will adjust dynamically.
12 Responses to “Technicals 28th Nov 2011”
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Jai
I could not act on your Hero SHORT on friday. I have shorted the stock at 2074 and simultaneously bought a december 2100 call for 66. In light of the above, what should i keep my stop for the short position..
Hold on to them both. I was actually looking for a put back spread on HH. The liquidity seemed poor in options. I might loosen the stop on HH a little higher.
Jai,
Where do you think this current upmove to terminate.. does it have enough legs to go to 4900. Seems more like a suckers rally to me. Your views.
Ideally, 4982. Last week high 4873 if not crossed then downmove may not be over. So lets watch that.
Thanks
Can i buy Hero honda since i joined you yesterday can i buy it please suggest.
Regards,
Shailendra Singh Rajawat
HH is a short call.
sorry ! can i take short position
Sure you can. As you can see in the above note, the logic behind it. Below 1900, greater downsides open up
thanks
Would close above 2230-2250 be a better stop for HH? Higher end of the band.
Would close below 1850 be a safer confirmation to build up additional short positions? August end low.
Your comments please.
Thanks.
Yes that is a conservative trade but HH was weak in a strong market, 2130 should put a lid. If for some reason HH bounces, we will loosen stop to 2195. Better to add below 1900.
Cheers,
Jai