Nifty(5050.15): Given that Nifty hit resistance of 5065 on Friday and evolving technical structure on the intraday charts, there are odds for this market to turn lower from here.
Nifty Daily chart- short term cycles
Nifty - hourly charts
Also, since January this market has shown tendency to provide reversals around a 6-7 day time period after a rally from a swing low. If this cycle is still in force, this should act as additional impetus for the roll-over to the downside. If you are already short on this market, you might want to use a stop above 5110. This happens to be the 61.8% fibonacci retracement of the entire decline from 5400. The conservative trade is to look for a lower low, lower high pattern on intraday charts before initiating short position. Remember the seasonals for December: Only 3 negative Decembers for Nifty since 1992.
Open Positions: Long OFSS 2037 SL 1953 Tgt 2200-2250
Short Heromotors 2025 SL 2195 Target 1750
Long Apollo Tyres 64 SL 59 tgt 71
Short Silver $34.2 stop $33.5 Tgt 28.8
17 Responses to “Technicals 5th December 2011”
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SIR CAN THE RUPEE STILL GO TO 55-57 IN THE LONG RUN DESPITE RBI COMING OUT STRONGLY THIS TIME TO DEFEND IT NO HURRY ANSWER AT UR FREE TIME
Yes, no change in view. RBI cannot do anything it is beyond their control.
Sir
We have seen some correction in dollar and a upward move today… with European situation at hand can we expect the second leg of the rally to take place…..or should we wait
Dear Jai,
I havn’t received the SMS for OFSS position
Ajay
It is not possible Ajay. Could you please check your profile and see if the number is correct? If not please email support your correct number – the number you have provided during your registration is on list
Regards,
Jai
hi jai,
one very silly question , when you give call then on your call one should take position in cash or future ,
& if he take position in cash or future , he/she should increase his position , if target not achieved that is call move away from the target .
i know its a silly question but i want to know the its answer from expert like you.
Thanks & Regards
As long a call is staying within the stop loss limits the call is effective. You can pyramid or average ur position as you want as long the stop loss is not violated. The best of calls usually stay in the direction of the trade.
one more doubt if i pyramid then pyramid will start from lower which is largest side to smaller or its opposite
Jai
Your views on Bajaj auto. i have shorted two lots at 1701 and simultaneously bought 1700 call @ 50… What should my targets be.. i have kept the 1st target as 1600.. would like to know where should i keep my 2nd target…
Stop abv 1774 is best. Not a clean chart but if u happen to be right, you are looking at 1390-1200
Hi Jai,
Once again your view on Crude? It has broken the immediate previous support & now threatening the mid-term support of around $103.
The charts tell me its on the higher side of its usual range & could see a sharp downside. Wanted to get your expert view if possible?
Hi Jai,
Please let me know your thoughts on Indusind bank.
Thanks in advance
Regards
I think this has to test 200 atleast once.
Thanks Jai. Also Nifty has completed 13months and 55 weeks of time-wise correction. Any weightage that can be given to this Fibonacci numbers. Pls let me know your views
Regards
Hi,
Yes those are part of the tool box. You need to have other signals working with them.
best regards,
Jai
Jai, just wanted to check, whether the view of market making a meaningful High/Low on 9th December, still holds true. You were expecting a low on that day and then a rally. Are we still staring at that set-up? Thx
Hi,
I explained this to some1 else. Here it is again, I was expecting a HIGH or a Low. Since December has been traditionally bullish for India, I was expecting a new low and a rally, which would still make it a +ve December. Now it looks it might be a high, since EU is having another crisis meeting on 9th. Remember, price is the boss, it must confirm our analysis. We are being prepared, nothing else.
Best regards,
Jai