Bulls rode a well OILed Nifty on Tuesday, where as DOW slipped! Slippery when wet I guess! I have been often saying that domestically we don’t have any triggers to move the markets we are just towing the global line. Since we were closed on Wednesday and today morning we just took cues from weak Asia and a confused DOW, Europe didn’t help much either, and with Inflation figures to come up in the evening, traders, I presume decided to book whatever profits they had courtesy Tuesday’s move.
A quick glance at the hourly chart below, we see after making that big red candle we just hung around saving the supports. The MA sequence is lined pretty well, with 20 above 50 and 50 above 200. Nifty needs to break 4520 to justify the uptrend on the hourly chart, the lower side looks like 4420/4400 and once again 4370 where the 50 and 200 EMA’s are nesting.
Moving on to the Daily chart, we took support at the 20 period MA and 4360/70 is strong support. The HH and HL pivot is still in play. Another interesting observation is that if we break our HL pivot at 4200 this time it will complete a bearish H&S on Nifty! Too early for these presumptions but one should know their levels crystal clear before initiating trades. ADX is still not showing signs of waking up from its slumber. Again at the risk of sounding clichéd, Nifty can be saved if only RIL takes out 2220/40, above that 2270 and then 2230.
If tomorrow we gap down courtesy DOW and still manage to hold above 4370 then one can take a small trade with a 20 point stop.
"Failure is a part of success. There is no such thing as a bed of roses all your life. But failure will never stand in the way of success if you learn from it."
Hank Aaron
2 comments:
Looking at the US Markets and its effect on Europe at this time(04.09.08.10.10 P.M), we are most likely to touch 4370 or 4350 levels in the morning. If we can hold these levels and rally up, the uptrend will be intact.
But if the market breaks the 2 day Low at 4343, we will be down again.
Caution:- We can't ignore the world markets.
Ilango Hi
my sentiments too! Now a days its the global cues, yes if we sustain this shock and hold 4350/70 the Bulls are in the play otherwise the tables will turn and hungry bears might try a lil huggy!!!
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