Trading with Volume Spread Analysis (VSA)

[adultvish]

I have not confirmed whether deliverable volumes are useful or not, but I am discarding that idea because data compilation was getting difficult.

well, Sir.. you can try at ur level.
But as much as I got to know and understand VSA, using delivery volumes may create confusion.
And, if regular volumes do give good results; there is no harm in using them.

 

[bunny]

NIFTY spot at 4925 or +95. The game of marking down and buying by professionals seems to have started again.

 

[adultvish]

NIFTY spot at 4925 or +95. The game of marking down and buying by professionals seems to have started again.

:thumb:
yes, during downfalls the volume is decreasing significantly; supply going quite weak. Those who shorted around 4800-4850 levels are simply waiting for their stoplosses to be triggered. Till 5100, there is no stopping in Nifty; while thereafter, we need to give another serious look at the charts.
In a day or two, the short-covering will start and then we will have huge upside movements.

 

[adultvish]

Nifty likely to test 4900 within next few minutes; before starting its upside journey again

 

[nimish_rulz]

Nifty likely to test 4900 within next few minutes; before starting its upside journey again

No because Dow futures is green now so are European Markets and also the futures is reducing the gap in discount. It was more than 10 yesterday. Most of the smart money accumulated their stocks yesterday. Look at Hong Kong and China too 2.2% up both.

 

[bunny]

Anybody wanna go long in a last minute trade? Looks good. NIFTY spot at 4928.

 

[nimish_rulz]

Anybody wanna go long in a last minute trade? Looks good. NIFTY spot at 4928.

Bought Bajaj Hindustan and GMR Infra

 

[adultvish]

Anybody wanna go long in a last minute trade? Looks good. NIFTY spot at 4928.

I was thinking of entering long in HUL; but as per rule I never block all my capital at one time and I have just made my trades yesterday; I quit.
though, HUL is a good buy at current levels. lets see what comes out of it in next two-three days.

 

[bunny]

Volumes on 03 Feb 2010

Volume on S & P CNX NIFTY index were lower than yesterday. We had an up bar that closed on the high. Yesterday's bar was a down bar on increased volume and wider spread(weakness?). However, that today's bar was able to close on its high even with lower volume hints that yesterday's down volume contained more buying than selling. Today, we have been able to close above the high of the up bar of 28 Jan 2010. This bar can be said to weak because it was a high volume up bar closing in the middle. The two up bars following this bar(28 Jan 2010) had reduced volumes, thus further deepening the concerns about weakness on 28 Jan 2010 bar. That we have been able to close above the high of that bar is good news for bulls.

Volumes in F&O today are comparable to yesterday's. This means that there is divergence of volumes in cash and derivatives market. So how we interpret this divergence? Does the low volume in the cash market signal weakness and the high volumes in F&O signal professionals taking position for a bearish move? From yesterday's hidden buying on a seemingly weak bar, it is unlikely that we will resume bearish trend. So we are looking forward to up days.

 

[adultvish]

Intraday traders please avoid it.

Long positions can be built in following scripts. S/L will be low of 1st feb 2010 in respect of all. And targets will be around 4-10% by 12th Feb 2010
AdityaBirla Nuvo
Ambuja Cement
Hindustan Unilever - quite strong
CIPLa - Strong
Bharat Petroleum - Strong
Bharat Forge
Dr. REddy
Gas Authority of India
Infosys
JP Associates

Besides following scripts are appearing weak. those holding these scripts may try to give specific attention.
ABB
GMR Infra
Bank Of India
Asian Paints
SBI
Unitech
Maruti