Morning Update at 0800hrs for Intraday Market Level

[captgolu]

Priyank bhai,
what about my problem,pkease.

 

[pranayk]

markets for 31 aug 09

the new week opens with the confusion in the minds of the traders whether the break out shown by nifty on friday by closing above the previous high of 4731 was a real break out or a bull trap for all those who bought the break out. Secondly the cleaner index sensex has not reached the break out point of 16002.thirdly the indices have gone up consecutively for 7 days in a row. Fourthly monday being the last day of the month, can the indices have a new monthly and yearly high on monday & lastly dow having gone up for 8 days in a row, has corrected mildly on friday. At the back drop of all these negative aspects, nifty still looks highly bullish technically, to reach higher levels on monday. If there are no nasty surprises from asian markets, then one can still hope of another day of up move to equal dows recent rise of 8 days in a row.

For intraday trading on monday, nifty has strong support around 4686 levels a breach of which can bring it again down nearer to 4650 levels where solid buying support is likely to emerge. On the higher side nifty faces initial resistance around 4747 levels above which 4766 may pose some problem. Above this level, a cross over of 4788 may be tough on monday as it is the 61.8% fibonacci retracement level from jan 08 high of 6357 to the oct 08 low of 2252. The decisive cross over of this critical level will certainly come but a little later through a gap up opening.

Any intraday or a day or two of correction in markets during the week may offer golden opportunity for long term investors to boldly buy stocks in oil & gas exploration, power, infra , metals & banking sectors for very good gains in the medium to long term.

 

[cmak]

Priyank bhai,
what about my problem,pkease.

Hi GaptGolu...

As you are aware, markets are simply responding to the GREED & FEAR of the traders. If you think your trade is gone wrong do not wait long. Accept the facts and get out.
I request you to close your trade if it is wrong and . Please do not bother Pranay for a consultation (this is what I feel).
There are plenty of opportunities you will get to recover your losses. Wait for the right time to act. Just follow PRANAY's superb analyzings and observations.

Hope you will take this positively...

Thanks
CMAK

 

[Prabhan]

markets for 31 aug 09

the new week opens with the confusion in the minds of the traders whether the break out shown by nifty on friday by closing above the previous high of 4731 was a real break out or a bull trap for all those who bought the break out. Secondly the cleaner index sensex has not reached the break out point of 16002.thirdly the indices have gone up consecutively for 7 days in a row. Fourthly monday being the last day of the month, can the indices have a new monthly and yearly high on monday & lastly dow having gone up for 8 days in a row, has corrected mildly on friday. At the back drop of all these negative aspects, nifty still looks highly bullish technically, to reach higher levels on monday. If there are no nasty surprises from asian markets, then one can still hope of another day of up move to equal dows recent rise of 8 days in a row.

For intraday trading on monday, nifty has strong support around 4686 levels a breach of which can bring it again down nearer to 4650 levels where solid buying support is likely to emerge. On the higher side nifty faces initial resistance around 4747 levels above which 4766 may pose some problem. Above this level, a cross over of 4788 may be tough on monday as it is the 61.8% fibonacci retracement level from jan 08 high of 6357 to the oct 08 low of 2252. The decisive cross over of this critical level will certainly come but a little later through a gap up opening.

Any intraday or a day or two of correction in markets during the week may offer golden opportunity for long term investors to boldly buy stocks in oil & gas exploration, power, infra , metals & banking sectors for very good gains in the medium to long term.

Hi Pranay,
Superb analysis. Wish I will be able to do the same too in future...:thumb:

 

[pranayk]

morning update at 8 am 31 aug 09


last week on friday, dow after 8 consecutive days of rise corrected a bit to close 36 points lower. Brazil closed absolutely flat. European markets were generally up by about 1%.asian markets have opened mixed but may close flat to weak by the end of their trading as the month end considerations will come into play.

For indian markets, the opening may be flat to mildly weak but being end of the month there may be high volatility with bulls trying to close above 4730 levels and bears trying their best to close it below 4700 levels. So with this pull & push the markets may finally close flat or slightly in favor of the bears. Failure of sensex to trade above its break out point of 16002 also may generate fear in the mind of the bulls that the break out & close above 4731 by nifty on friday was a false break out as a bull trap. However both the indices moving up from where they had left on friday may be a strong bullish signal for coming days. Indian markets having gone up consecutively for 7 days in a row, are ripe for a pause or a mild correction after which the up move may resume.

Traders may buy good stocks of power, metal & oil & gas exploration on every decline for good gains. Option traders may buy 4800 calls on fall of index towards 4660 levels and buy 4600 puts on rise of markets above 4750 levels and carry call & put in equal ratio. The gdp numbers to be out around 12pm may be the decider for the monthly closing by end of the day. in all probabilities, the gdp numbers to be out around 12 pm, may not encourage the stock markets.

 

[pranayk]

Hi Priyank bhai,
I need a serious advice from u,I have shorted a nifty at 4500 of september expiry,kindly suggest me what to do whether square off or carry it?

You seems to be little late to square off your trade. As of now, all the technical indicators are bullish and there is remote possibility of nifty touching/breaching 4500 in september 09 . You will get minor correction in between. Try to come out of your trade in a day or two and accept the losses gracefully. You will get lot of opportunity in the future to recover your losses. Now Cheer up

Thanks
Pranay (not Priyank)

 

[pranayk]

Hi Pranay,
Superb analysis. Wish I will be able to do the same too in future...:thumb:

Certainly you will
Good luck.......

 

[captgolu]

Thank you Pranay bhai and sorry for calling u prayank

 

[findvikas]

You seems to be little late to square off your trade. As of now, all the technical indicators are bullish and there is remote possibility of nifty touching/breaching 4500 in september 09 . You will get minor correction in between. Try to come out of your trade in a day or two and accept the losses gracefully. You will get lot of opportunity in the future to recover your losses. Now Cheer up

Thanks
Pranay (not Priyank)

I would be on the bear side... you may get below 4500 if this move continue... US commodities are seeing major buying from couple of days and so are US bonds.... it turned true today that fear is there and friday was a bull trap.

You should see atleast 4450 before we go back to 4900... but its your money so play safe and hedge it

 

[pranayk]

I would be on the bear side... you may get below 4500 if this move continue... US commodities are seeing major buying from couple of days and so are US bonds.... it turned true today that fear is there and friday was a bull trap.

You should see atleast 4450 before we go back to 4900... but its your money so play safe and hedge it

I agree with you. Market may be watched for another day or two and pick a right time to exit.....

Pranay