Trading Nifty

[Gaurav Kumar]

After gap up open our entry was slightly higher

sikandar

Dear Sikandar,

I acccept your point. We could have waited for the gap to be filled. But we must not forget, that Nifty could very well have left the gap to be filled later.

Also gap theory does work more often than not, but if you carefully look at the data you will find that nifty has also left a gap at around 3800 levels (it may be 3900 level, as i have forgotten the correct level) and has not filled it.

Further in stocks gaps are often not filled at all. Take the case of SBI, L&T as examples.

So gap theory needs to be utilised but the theory itself accepts that certain gaps shall not be filled. So be careful on that front

With best wishes,

Gaurav Kumar

 

[Gaurav Kumar]

Dear Sikandar,
To add to it on a personal front, i have indeed placed an additional order at 4325, about the point where the gap gets filled. But for the purpose of the thread, i cannot take another order, considering the financial position.
Gaurav Kumar

PS keep commenting. Nice to hear about gaps, an area which has been of interest to me.

 

[sikandar]

Dear gaurav
Ur point is well taken. The signals are from any reputed system? u r denoting that an order for down side average at the gap.

 

[Gaurav Kumar]

Dear gaurav
Ur point is well taken. The signals are from any reputed system? u r denoting that an order for down side average at the gap.

Dear Sikandar,

I use of combination of TA, fundamentals, economics and Psycology to trade. My focus is mainly on patterns of trading that emerge from what the market movers would be thinking (hence psycology).

So there are no signals from a reputed system.

With best wishes,
Gaurav Kumar

PS i do not believe in averaging. I once wrote an article titled "The folly of Averaging". The article was published in the B-school link on indiainoline.com. Not sure if you can retrieve it from the archieves. The article was written about 5 years back.

 

[sikandar]

Dear gaurav
Thanks for clarification

 

[Gaurav Kumar]

Dear gaurav
Thanks for clarification

Dear Sikandar,

Nifty future has just hit a low of 4325.55 . This is about the lowest it should get today. Nifty set to rise now

Gaurav kumar

 

[sikandar]

Dear gaurav
Waiting to see what will going to happen

 

[Gaurav Kumar]

Dear gaurav
Waiting to see what will going to happen

Dear Sikandar,

The gap has been well and truly filled.

Gaurav Kumar

 

[sikandar]

Dear gaurav
Ok after filling the gap going to be a raly?

 

[Gaurav Kumar]

Dear gaurav
Ok after filling the gap going to be a raly?

Dear Sikandar,

I frankly did not expect the gap would be filled, but it has been. At present the market has taken a lot of time to fill the gap.

So now with about 30 mins to go, i would expect the market to go up, but am revising the target downwards to 4370 at which i shall exit the nifty position that i took today at 4345. This is to be on the safer side, as i have another long position anyway.

Even if the market does not achieve the target today, i do not see any cause for worry

Gaurav Kumar