12-30 Market Analysis

SPX is sitting at the key price level. It has a strong resistance above it and in recent times it has dropped from this level 4 times. 


During last drop it took half bars to recover all points which shows accumulation. 


I certainly don't expect that this resistance can be broken this week but looking at the recent action, it seems like its long due now. We may see little drop from this range but it seems like it will recover it fast. If it falls back it should not fallback under 1220 level if we are expecting it to jump higher.....

12-28 Market Analysis

Major stocks were down today with little higher volume than last two days but still very low trading week. Nifty seems to be heading towards 4640 range where it has previous support. 4750 is a major resistance level, it will take very big bull push to break this level to upside.

We have very strong support at 4640 region and if you have short, this would be one place to cover it. 

So far in 2011 we have seen lower highs and lower lows which is a very clear indication of market has more supply than demand. Very interesting article to read on this topic - money outflowing from BRIC nations (Bloomberg).

Looking at the Nifty action of recent times, I believe that we will see 4450 region price in next couple of days or weeks and then we will be able to see markets next path..... (may be more shorting or range bound movement)....(I really didn't say to short really......)

SPX is also in the overbought area. Looks like we are heading towards the 1225 price range as well. But again this is a low trading week and we will get good idea about the markets situation next week onwards.

In general, not really expecting major movement in market and chances of market going down is higher than going up.

12-27 Market Analysis

Light volume day as expected. This week is suppose to be the low volume  week and may not have major movement as we will see less participation from big funds. All major stocks also have the  light volume day as well. I don't see much change in the market leader.

Nifty is at the key level and in past we have seen major jump from this level also without major volume.

SPX is standing at the key resistance level and we have seen major fall from this level so its a interesting situation. Today there hasn't been major activity in SPX as well.

Looking at this situation, i don't expect to have major changes in the market (unless we hear something from Europe :) )....

This should be a very light day.......

December 07 Possible Trades

WIPRO - Today breakout of his 390 range with heavy volume. High risk long trade opportunity would be to add long position between 398 - 404 and stop below 385 and watch/cover around 430 price range.

    For day traders,  you can play around key price level 404 and 407.

11-07 Market Analysis

Nifty seems to have a little resistance at 5060 (which is visible on weekly chart). Nifty is having difficulty crossing this level since last 3 days. We are seeing the same volume as three days ago but daily range is half than December 2 which is a bearish action. Looking at the effect of the Europe news, i would not add the long term positions. 

Following are the key levels for the day traders. At this level one can watch for patterns for high probability trades. Immediate Key price level 5073,5156 and 4978.

12-5 Market Tip update

Maruti - Close the position. It has given us good 5%

KFA - Close the position. It has also given us little over 5%.

12-5 Market Analysis

As we have seen in last couple of weeks, market makes moves based on the news. Nifty has has the doji at the end and this means little trend change. I don't see much volume today so big funds are on sidelines and waiting for some action to happen.

Today S&P threaten to downgrade 15 Eurpoe nation's rating which should create major effect in the market. Most stocks in S&P 500 and Nifty didn't have volume to support the recent really. SPX is standing at the key level and Nifty is looking weak too. 

If Nifty breaks Fridays low, then chances are market will at least test the last two days support which is around 4930 and if news channel support the bearish view we may cover little bit of Thursday's gap. If we get bearish mindset today, Day trader should be able do good.

One Risky strategy to try is to have limit short order at 4990 and cover it at 4945 with stop at 5035.

Please utilize the comments section send any questions/comments regarding my posts.

12-1 Market Analysis

As expected today market gapped up today. It looked like we would see 3-4% kind of gain today. But closing was poor at the best. Since the starting of the market, i don't see any strong force to go up. All major Nifty Stocks have the same behavior. They all ended up lossing their most of the daily gains and closed the the bottom of the pile which is not a good sign for long term movement. we should see Nifty going down little tomorrow. 

I am not excited about todays closing, it shows the weakness in the market. No need to create long term position at this point. This is a day traders market but they will have problem making money as its called a royal choppy market....

Play safe and have a good trading to all