Two days and almost a 200 point rally in Nifty! A bullback…oops I meant a pullback or is somebody’s goose is being cooked? We had an important announcement about the schedule of our general elections and the moral code of conduct comes into force on February 8th, this means that the incumbent government has just few days left to play SANTA (I know Christmas over but if the government wants to play SANTA, it can play anytime!). All the investor friendly (and some not so friendly) and populist schemes and bills have to passed pronto. Elections are big time money spinners a lot of money needed will be pulled out form safe havens (the stock market is one good parking place!). This might just end being a RELIEF rally…..RELIEF!!! Yeah RELIEF for the politicians!!!
Anyways we mustn’t bother with all these as traders and just trade what we see on the charts. Deepak Singh of State of the Market once commented to me that while trading it’s more that enough if you use your EyeQ rather than THE IQ! Amen! So lets se what we have on the daily charts today, well for starters we are back to the all important pivot we have often discussed 2870! Secondly the price has just stalled at the confluence of the 20 and 50 periods MA’s. As of now from the daily chart it looks like the next trouble spots are 2915/20, 2950 and 3030! Speaking of supports we have something strong (hopefully) for a change at 2780 and 2680.
The hourly chart below shows once again how the confluence works, the price stalled right at the 200 periods MA and the 38.2% retracement. Funnily the entire weeks OS position now seems to be
"Procrastination is the thief of time." Edward Young