BraViSa TempleTree-India Market Calls

[d_s_ramesh]

Profit cover exit moves down to 4947 on spot. Those wanting to cover shorts early can use this exit. Market is unable to go either way. SAR trades shall hold on to shorts. 5015-5000 turns to be the next strong resistance.

 

[d_s_ramesh]

Short cover at 4947 gives a profit of 106 points. This was the conservative exit. Trend is still in short, we will reverse position only on signal.

 

[prasham]

How does writing 5000 CE @ 45 feel? With uncertainity looming all over, the only way markets shall go is downwards (IMO). Atleast in the short term. Moreover with expiry only 5 days away it would probably loose the value pretty fast.

Please advice.

 

[d_s_ramesh]

I am not for options, the broad consensus about option writing or selling is that the winners or those have made good money trading options is less than a %. This is the universal reality & long term results so far. When futures is giving rock solid returns why go behind a risky investment.

We do not take any view about the options market, I am very sorry about it Prasham.

 

[d_s_ramesh]

Bloodbath on EUROPE & US markets

NIFTY is expected to open gap down and reach next support of 4830-4810 or even further down. Today we saw some recovery which gave short cover opportunity for value traders. There was also new short trade at 4948 levels while price reached value zone. Weekly, Daily as well as hourly all the charts are in strong trend mode. Resistance moves down to 4960-975 levels.
Hold on to exiting shorts along with new entries, just follow the trend and reap good rewards.

Sectors had mixed performance today, all of them oscillated between 0.5 to -1%. Stocks in the BASIC MATERIALS and ENERGY sector is likely to witness strong bear moves. As we write European markets have closed with above 2-3% losses while US market has hit close to 3.5% weakness.

Any effort by the governments across Europe and US are not able to hold the markets up. Each move is adding more fuel to the fire. Our market is the only market to have closed positive today, will we face the worst in the weekend session???

 

[d_s_ramesh]

Caution Warning Liquidate.

Market will open Gap down, all the frontline stocks likely to tumble. BASIC MATERIALS, UTILITIES & INDUSTRIAL Sectors will see a wipe out. Hold on to short positions, Governments world over are scrambling for cover.

Bears will fly through the flood gates of nearest support without any effort. Volatility will raise sky high. Bulls take cover, liquidateBears take a joy run laughing all the way to the Bank.

Warning: Please liquidate all long positions, further bear smashing expected.

 

[d_s_ramesh]

Shorts holding

Markets recovered from lows, there is a strong bullish divergence on the MACD Lines and Histogram of the hourly charts, EMA at 4970 though quite far away at present, has a likely chance of reaching in few bars from now.

If the market is in trend while the cross over happens, we reverse our short position and go long. Meanwhile the new short traded at 4948 spot levels has got covered at 4900 spot value, gaining close to 50 points profit.

We cannot nail the tops and bottoms, if we are able to capture the best part of the move with regular consistency, we can reach the goal of above average returns.

 

[PuneetAro]

Thank you puneet aro for your compliments. Sorry for the late reply, I was more attentive in posting updates and in that I missed viewing your message properly.

Thanks for considering an expert, but I am not. TA is an ocean and Markets are far beyond, I am just a droplet. There is abundant knowledge which is yet to be acquired. First hand experience in the markets with real money gives the necessary edge required to trade or even invest in the markets.

Any amount of theory does not work here. It is Human psychology largely at play here in the markets. To me even paper trading does not prepare you well, nothing to beat real money experience. I don't mean that theory is not necessary, both theory and practical experience need to be balanced.

Going behind the mass market will not work, we need to have an edge. We should have our own unique approach to the markets. Have a fully tested trading system which exactly suits your psychological process. Then the discipline to follow that system without cross judging the signals. Of course even well tested systems needs to be tweaked few times to adjust market dynamics.

About the 3 times returns: Markets worldwide are very weak, no index for that matter is having strength to move up. This is the whole market scenario. But there are some Sectors and Industries which are shining bright even at these turbulent periods. One among them is the LUXURY goods sector, Jewellery etc. You can find TITAN here giving higher high every other and show no signs of tiredness.

Markets being weak in itself is a boon to us traders. Shorts give fast returns than long trades. It is said that bulls climb through the stairs while bears jump through the window. Today there was a regulation in Germany to ban naked short sales. What is the message from this news? The Governments across the globe are panic struck, the damage is caused with unbalanced growth. When the failure is showing up they are running for cover, but one after one the pile of mistakes are going to tumble down on them.

Already US markets made a similar effort when Lehman Brothers and Meryl Lynch collapsed making bears run amok in the markets. Short sale regulation became counter productive and markets saw renewed reason to fall again. Within three months from imposing the ban, they were forced to lift it back.

What does all these news provide? An icing on the cake, Just keep shorting markets, and know what you will laugh all the way to the bank. One mans difficulty is another mans gain, let the governments pay it out in their way, we shall make big time gains from their mistakes.

A single lot of NIFTY needs around 25K margin. We suggest you trade one lot of NIFTY with a capital of 1 lakh. If you are able to make 60 points per month as profit either long or short, you make 3k per month. This would give you 36% returns PA. Is this not a lucrative return compared to any benchmarks.

This can be achieved by just following some simple rules with discipline. There can be few months with losses, but that gets repaid in those months which have robust gains. A simple crossover system traded on Nifty has returned 150% gains for the year 2009-10. Isn't it amazing.

Put your heart and soul into any profession, you cannot but be successful and be in the top of your career. I believe you will grow to your genius levels in what ever field you take up.

Happy trading.
(I apologize that I was not able to spell check as I have to attend to market works)

Thanks for providing me wonderful insights about the market. You are right that short-selling ban has always turned out to be a boomerang. The markets have fallen after that ban. BJP Govt did that in india once and market had a steep fall. I am trying to create a system that must work for me. I use Stochastics and bolinger bands, higher tops and bottom formation chart to trade. Is that enough? or you can guide how I should go about it. which is the most accurate and reliable system (i mean patterns which are easy for a beginner). Today traded TATA STEEL. I bought it at 503.5 and i sold it early at 508. Stock reached 513 after that. I am attaching the chart(GIF File). Can you just have a look and let me know what more could i have done to improve my trade?

I am very impressed by your logics and the way you write. I am just a beginner in this ocean. I would need a mentor. would you be my mentor? I want to know your full name and email 0r contact number.

 

[d_s_ramesh]

Short again

Short NIFTY again below 4892.40 shpot value. Market is in trend, so trade all signals.

 

[d_s_ramesh]

Markets bracing to reach cross over. EMA is at 4962 now, trend is active. Lets watch if the market is able to pull up. If not short again, as long the trend is prevailing there is money on the table to grab, its our individual efficiency about how much we are able to get for ourselves.

Happy trading and a wonderful weekend folks.