Morning Update at 0800hrs for Intraday Market Level

[pranayk]

morning update at 8 am 07 sept 09

on friday dow was up by 96 points. European markets were up from 1% to 2% with uk ftse closing up by 1%. Brazil was up by 1.7%.asian markets have opened mixed but will rise to close +ve as the day progresses. However chinese markets may remain flat to mild for the day after 4 days of good recovery.

For indian markets, expect a bullish opening. The initial range may be confined to 4700 on the higher side and 4670 on the lower side. On friday nifty had moved up from the days lows of 4580 to the days highs of 4696 to close at 4680 a rise of 100 points from the lows. Having closed above the highs of 2 previous days although is a highly bullish signal, yet it may not straight shoot up as every one is in the bullish mood after fridays last hour surge.

When everyone is bullish, the market takes a pause. However it would be wiser to get into long positions on any intraday correction. A decisive cross over of 4692 to 4696 can see a good spurt in nse index towards 4720 or higher levels. On the lower side 4670 should provide the required support for the day.

 

[aid]

GM everyone.

Today after a long time the touch of GREEN is seen everywhere and the RED disappeared from the picture. Everywhere there is a festive mood. MA DURGA is coming to bring joy n hope(Bull) and to kill the daemon(Bear) .......

Is today going to be a Landmark ? ????

Thanx n Happy Trading.

 

[NiftyPundit]

Nifty Levels: On Monday 4645-4660 will be Buy area. Strong Markets will not break 4620. Above 4660 Nifty could test 4700-4710 . Further it could open for 4740-4850. Nifty has support at 4580 . Below it could open for 4545-4480 .
.
Nifty call: Buy nifty above 4710 for a tg of 4730-4743-4790 sl 4680 (Intraday)
Sell Nifty only below 4645 for a tg of 4620-4582-4548 sl 4670 (intraday)

 

[pranayk]

Chart Analysis for 8th sept 2009

 

[pranayk]

markets for 08 sept 09

the fridays surge lived up to its reputation and on monday it continued from where it left on friday to breach recent highs of 4744 to decisively close high above it at 4783 a shade lower than the fibonacci level of 4788 although this critical level was breached during intraday trading. Although the rise was with lesser volumes which perhaps may be attributed to closure of us markets on monday. Interestingly sensex could not cross the critical level of 16046 which is the fibonacci 61.8% retracement from the all time high of 21207 till the bear market low of 7697.sensex just missed the critical level by a whisker & could just manage to reach till 16036.so,till such time 16046 & 4788 are decisively breached and indices close above these levels of 16046 & 4788,the false fear of a sharp fall will still be alive & will time & again try to pull the markets down to generate the fear that the markets are still part of a bear market rally.

If one has a closer look at the daily eod chart above, one can clearly see the decisive breach of the resistance line around 4770 levels. Although cleaner index the sensex is yet to breach and close above the resistance line, it is just a matter of time when one will see sensex breaching the resistance line as well as the critical fibonacci level to sharply move up towards 17000+ levels in quick time. Similarly if dow or chinese markets dont play the spoil sport as they have done many a times in the past, one should not be surprised to see nifty testing 5000 mark by dewali this year.

Important indicator slow stochastic in the chart above is on its way up by turning upwards before entering the lower zone that should take the indices to much higher levels in a few days time. Any intraday correction or even a pause in the momentum should be taken advantage of to buy for good gains in coming days. As long as nse index level of 4722 or to be more safe 4670 is protected , one will keep on seeing further up move in nifty to much higher levels in coming days. After such big moves in 2 days from nifty lows of 4580 on friday, one should be prepared for a pause either on tuesday due to resurfacing of china syndrome affecting asian markets or on wednesday induced by dow on tuesday night

FOR INTRADAY TRADING ON TUESDAY NSE INDEX FINDS INITIAL SUPPORT AROUND 4777 A BREACH OF WHICH WILL BE THE FIRST WARNING SIGNAL THAT THINGS ARE NOT THAT ROSY. A FALL TOWARDS 4750 TO 4744 WILL AGAIN INVITE SOLID BUYING INTEREST. ON THE HIGHER SIDE NIFTY AFTER THE DECISIVE BREACH OF 4788 MAY FIND FIRST RESISTANCE AROUND 4808 LEVELS A DECISIVE BREACH OF WHICH CAN EASILY TAKE IT UP TOWARDS 4833 FOLLOWED BY 4870 LEVELS IN QUICK TIME..

 

[chachi]

Pranayji,

I came across this thread very recently and currently I am your fan for your simple yet accurate analysis.

It is always worth to read your analysis to know the pulse of the market as they almost behave exactly like what you say.

Keep going......

Regards
Chachi

Sorry Pranayji for misspelling your name.....no offense meant.........Just some dixelia effect........

 

[pranayk]

Prayankji,

I came across this thread very recently and currently I am your fan for your simple yet accurate analysis.

It is always worth to read your analysis to know the pulse of the market as they almost behave exactly like what you say.

Keep going......

Regards
Chachi

Thanks

Pranay (Not Prayankji)

 

[pranayk]

morning update at 8 am 08 sept 09


in the absence of us markets, other markets across the world had a great day on monday. European markets were up by 1.5% to 2% with uk ftse rising by 1.7%. Brazil was also up by 1.7%.asian markets fearing china effect on one side and likely furious opening of us markets on tuesday night on the other side have opened flat to mixed. Most of the world markets had a free flying experience for last two days and us markets opening on tuesday may chop off their wings on wednesday, hence the fear amongst asian markets on tuesday morning.

For indian markets also, one may expect a flat opening. After 2 days of big rise, there is every possibility of a pause on tuesday. This pause or intraday correction should be used by long term investors to buy quality stocks in mining, metals and infra stocks for good gains in the long term. Indian investors & traders must realize that chinese markets will fall much more due to the issues unique to china itself & will in no way affect indian markets & one should take full advantage of this chinese syndrome to buy on every fall.

For intraday trading, a correction towards 4750 levels should encourage bulls to re enter into buying mode. Good news from australia on their mining and metals may see mining & metal stocks gaining today after initial deceptive drop. Option traders should buy 2 calls of 4800 on decline of markets and buy 1 put of 4700 on rise of markets above 4800 & hold in the ratio of 2 calls to 1 put. Option writers may boldly short 4500 & 4600 puts on decline of indices. Markets are in for a big rise after a pause or mild correction.

 

[pranayk]

Chart Analysis for 9th Sept 2009

 

[arbharath]

Dear Pranay
I think the chart is not attached

Regards
Bharath