markets for 10th nov 09
the bulls on monday showed what they are really capable of doing. They initially took nifty above the critical level of 4820 till the neck line of 4830 then allured the bears to show their power to bring nifty down till 4790. From here on there was no looking back for the bulls and they took nifty up continuously to breach fridays high of 4836 followed by fibonacci 50% resistance at 4860 & then breached the almighty level of 4868 to induce another bout of massive short covering to shoot past 4900 to reach the level of 4905 to close near the highest level of 4900.the advance to decline of 1050 to 262 showed re-emergence of buying interest coupled with massive short covering by trapped bears.
As was mentioned in yesterdays news letter, one can easily notice a reverse head & solder with neck line around 4830 levels which was decisively breached on monday. With the low at 4540 & neckline around 4830 one can easily expect around 300 points rise ( with minor corrections in between) from the neck line at 4830 till 5100+ levels, may be by the end of this week or early next week.
For intraday trading on tuesday , initially 62% fibonacci level around 4936 may pose as a resistance which will be crossed ultimately after a small downward correction as was today when the neck line at 4830 posed as an initial resistance and was breached after nifty fell to 4790 to rise again to breach it. Second factor to be kept in mind is that tuesday will be the 5th day of consecutive rise in indian markets that may invite a correction, however the pattern formed in the charts, bullishness of indicators in daily eod charts, the volume & advance to decline ratio clearly indicate that the bulls are in full control of the markets now & will not like to slip away the initiative to the bears so easily.
IF ONE HAS A CLOSER LOOK AT THE HOURLY CHART ABOVE, ONE CAN CLEARLY NOTICE ANOTHER SUMO WRESTLER TYPE STRONG RESISTANCE AROUND THE LEVEL OF 4959 JUST ABOVE THE FIBONACCI 61.8% RESISTANCE OF 4936. ALTHOUGH THIS RESISTANCE MAY BE A BIT TOUGH TO CROSS DURING ACTUAL TRADING, HOWEVER IN CASE OF BUYANCY IN US MARKETS FOLLOWED BY BULLISH ASIAN IN THE MORNING, THEN A BIG +VE INDICATION FROM SGX NIFTY MAY INDUCE A BIG GAP UP ABOVE THIS CRITICAL LEVEL OF 4959 THAT WILL TRIGGER ANOTHER MASSIVE WAVE OF SHORT COVERING TO SHOOT PAST NEXT CRITICAL LEVEL OF 4996 TO BE AT THE WHISPERING DISTANCE FROM THE "WATCH OUT BEARS & FREE FOR BULLS" LEVEL OF 5052 A BREACH OF WHICH WILL CERTAINLY CONFIRM THE RESUMPTION OF BULL RUN TO NEW HIGHS AND ALSO CONFIRM THE HISTORY THAT NOVEMBER & DECEMBER MONTHS IN 9 OUT OF 10 CASES SINCE 2000 OCTOBER MADE HIGHER HIGHS THAN OCTOBER HIGHS.
FOR INTRADAY TRADING ON TUESDAY, TRADERS MAY CONTINUE TO REMAIN LONG WITH QUIT POINT AROUND NSE INDEX LEVEL OF 4884. A BREACH OF 4884 MAY BRING DOWN NIFTY TO 4860 THAT WILL STRENGTHEN BEARS TO BRING DOWN NIFTY TOWARDS 4840 LEVELS FROM WHERE BULLS WILL COME POUNCING BACK WITH FULL FORCE. ON THE HIGHER SIDE START OF THE GAP AROUND 4949 TO 4956 TILL ABOUT 4962 MAY BE THE INITIAL RESISTANCE. ONCE THE GAP IS CLOSED AT 4962 THEN THERE WILL BE NO STOPPING FOR TE BULLS WHO CAN EASILY EYE THE NEXT RESISTANCE OF 4996 FOLLOWED BY 5033 AND THEN FINALLY 5052. ALL THESE MAY NOT COME IN ONE GO BUT MAY COME AFTER SMALL SMALL MINOR INTRADAY CORRECTIONS. ABOVE 4956 TO 4962, ONE CAN CONFIDENTLY GO LONG WITH QUIT POINT JUST BELOW THE PREVIOUS INTRADAY LOW OF 15 MINUTE TIME FRAME CHART OF THE DAY. ANY TIME OR ANY DAY IF NSE INDEX CROSSES 5052, THEN ONE CAN BOLDLY ADD MORE LONGS TO HIS KITTY TO SEE NEW HIGHS IN NIFTY IN QUICK TIME. SWING TRADERS MAY HAVE NSE INDEX LEVEL OF 4747 AS QUIT POINT FOR THEIR LONGS AND ADD MORE LONGS ABOVE 4959 & RIDE THE BULL RUN FOR NEW HIGHS.
the bulls on monday showed what they are really capable of doing. They initially took nifty above the critical level of 4820 till the neck line of 4830 then allured the bears to show their power to bring nifty down till 4790. From here on there was no looking back for the bulls and they took nifty up continuously to breach fridays high of 4836 followed by fibonacci 50% resistance at 4860 & then breached the almighty level of 4868 to induce another bout of massive short covering to shoot past 4900 to reach the level of 4905 to close near the highest level of 4900.the advance to decline of 1050 to 262 showed re-emergence of buying interest coupled with massive short covering by trapped bears.
As was mentioned in yesterdays news letter, one can easily notice a reverse head & solder with neck line around 4830 levels which was decisively breached on monday. With the low at 4540 & neckline around 4830 one can easily expect around 300 points rise ( with minor corrections in between) from the neck line at 4830 till 5100+ levels, may be by the end of this week or early next week.
For intraday trading on tuesday , initially 62% fibonacci level around 4936 may pose as a resistance which will be crossed ultimately after a small downward correction as was today when the neck line at 4830 posed as an initial resistance and was breached after nifty fell to 4790 to rise again to breach it. Second factor to be kept in mind is that tuesday will be the 5th day of consecutive rise in indian markets that may invite a correction, however the pattern formed in the charts, bullishness of indicators in daily eod charts, the volume & advance to decline ratio clearly indicate that the bulls are in full control of the markets now & will not like to slip away the initiative to the bears so easily.
IF ONE HAS A CLOSER LOOK AT THE HOURLY CHART ABOVE, ONE CAN CLEARLY NOTICE ANOTHER SUMO WRESTLER TYPE STRONG RESISTANCE AROUND THE LEVEL OF 4959 JUST ABOVE THE FIBONACCI 61.8% RESISTANCE OF 4936. ALTHOUGH THIS RESISTANCE MAY BE A BIT TOUGH TO CROSS DURING ACTUAL TRADING, HOWEVER IN CASE OF BUYANCY IN US MARKETS FOLLOWED BY BULLISH ASIAN IN THE MORNING, THEN A BIG +VE INDICATION FROM SGX NIFTY MAY INDUCE A BIG GAP UP ABOVE THIS CRITICAL LEVEL OF 4959 THAT WILL TRIGGER ANOTHER MASSIVE WAVE OF SHORT COVERING TO SHOOT PAST NEXT CRITICAL LEVEL OF 4996 TO BE AT THE WHISPERING DISTANCE FROM THE "WATCH OUT BEARS & FREE FOR BULLS" LEVEL OF 5052 A BREACH OF WHICH WILL CERTAINLY CONFIRM THE RESUMPTION OF BULL RUN TO NEW HIGHS AND ALSO CONFIRM THE HISTORY THAT NOVEMBER & DECEMBER MONTHS IN 9 OUT OF 10 CASES SINCE 2000 OCTOBER MADE HIGHER HIGHS THAN OCTOBER HIGHS.
FOR INTRADAY TRADING ON TUESDAY, TRADERS MAY CONTINUE TO REMAIN LONG WITH QUIT POINT AROUND NSE INDEX LEVEL OF 4884. A BREACH OF 4884 MAY BRING DOWN NIFTY TO 4860 THAT WILL STRENGTHEN BEARS TO BRING DOWN NIFTY TOWARDS 4840 LEVELS FROM WHERE BULLS WILL COME POUNCING BACK WITH FULL FORCE. ON THE HIGHER SIDE START OF THE GAP AROUND 4949 TO 4956 TILL ABOUT 4962 MAY BE THE INITIAL RESISTANCE. ONCE THE GAP IS CLOSED AT 4962 THEN THERE WILL BE NO STOPPING FOR TE BULLS WHO CAN EASILY EYE THE NEXT RESISTANCE OF 4996 FOLLOWED BY 5033 AND THEN FINALLY 5052. ALL THESE MAY NOT COME IN ONE GO BUT MAY COME AFTER SMALL SMALL MINOR INTRADAY CORRECTIONS. ABOVE 4956 TO 4962, ONE CAN CONFIDENTLY GO LONG WITH QUIT POINT JUST BELOW THE PREVIOUS INTRADAY LOW OF 15 MINUTE TIME FRAME CHART OF THE DAY. ANY TIME OR ANY DAY IF NSE INDEX CROSSES 5052, THEN ONE CAN BOLDLY ADD MORE LONGS TO HIS KITTY TO SEE NEW HIGHS IN NIFTY IN QUICK TIME. SWING TRADERS MAY HAVE NSE INDEX LEVEL OF 4747 AS QUIT POINT FOR THEIR LONGS AND ADD MORE LONGS ABOVE 4959 & RIDE THE BULL RUN FOR NEW HIGHS.
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